CoryC wrote:

We should all care which format wins. The difference between the image and audio quality isn’t noticeable but the prices is. Blu-ray players cost more, mostly because of licensing fees paid to Sony.

But the thing is, if Blu-ray does in fact beat out HD DVD (if these rumors about Paramount/Dreamworks and Universal switching are true that is) then companies like Toshiba will have no choice but to start making Blu-ray players. So Sony, Toshiba, Samsung, Pioneer, Panasonic will be just some of the companies producing Blu-ray players. Who will sell the most? The one who sells it cheapest. If Blu-ray does win, expect Blu-ray player prices to go down fast because of the competition. One format = consumer wins.

Oh, the power of competition. Yes prices will go down but it will have little to do with competition. Why? Because Sony is charging a fairly hefty licensing fee which is in effect a price floor.

Most electronics are sold with very little margin (profit per product) and money is made through economies-of-scale. That is even though a manufacture makes little profit per product they will sell LOTS of them and thus earn a reasonable profit overall.

Generally competition will drive prices lower but the license fee (price floor) will make that very tough unless a manufacture want to take a lose in order to gain market penetration. Initially, manufactures will find it tough to make any money on quality players. Price drops will come when enough of the units are being sold so the whole economies-of-scale thing can come into play. So how will manufactures get people to buy more players? Drop the price of course. How will they drop the price? Cut quality and features.

Bottom line is that initial price drops will came as a result of lowers quality/low features units being shipped, not more competition.

That is definitely true. It seems as though everywhere you turn you can get free movies with the purchase of players.

We should all care which format wins. The difference between the image and audio quality isn’t noticeable but the prices is. Blu-ray players cost more, mostly because of licensing fees paid to Sony.

But the thing is, if Blu-ray does in fact beat out HD DVD (if these rumors about Paramount/Dreamworks and Universal switching are true that is) then companies like Toshiba will have no choice but to start making Blu-ray players. So Sony, Toshiba, Samsung, Pioneer, Panasonic will be just some of the companies producing Blu-ray players. Who will sell the most? The one who sells it cheapest. If Blu-ray does win, expect Blu-ray player prices to go down fast because of the competition. One format = consumer wins.