The main point was that royalty rates are so low that it won't make a huge impact on Sony in a positive way. According to a spokesperson, Sony doesn't own the technology and royalties are shared among members so their take could end up being quite low (although, of course, better than if HDDVD won). Sony's hardware business model is described as "not very profitable", meaning that they're not making mcuh on each player (or even still losing money), in which case Blu-Ray could cost them money for years to come unless movie sales drastically improve.
The JVC story has an important lesson. Yes, VHS won...but how many people bought a JVC player? Since Sony doesn't own the technology, it will be left out of most of the profits if other companies undercut their prices and steal sales.
Interesting stats that before the PS3, HDDVD sales were 64% of the market. Now Blu-Ray is 65%.
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The main point was that royalty rates are so low that it won't make a huge impact on Sony in a positive way. According to a spokesperson, Sony doesn't own the technology and royalties are shared among members so their take could end up being quite low (although, of course, better than if HDDVD won).
Sony's hardware business model is described as "not very profitable", meaning that they're not making mcuh on each player (or even still losing money), in which case Blu-Ray could cost them money for years to come unless movie sales drastically improve.
The JVC story has an important lesson. Yes, VHS won...but how many people bought a JVC player? Since Sony doesn't own the technology, it will be left out of most of the profits if other companies undercut their prices and steal sales.
Interesting stats that before the PS3, HDDVD sales were 64% of the market. Now Blu-Ray is 65%.