Even the cheapest new Blu-Ray DVD players will retail for about $1,000. David Carey, president of electronics-component specialist firm Portelligent
Can that possibly be true? Who in the hell is going to shell out a grand for a Blu-Ray player? What's the target market?
Moreover, since the PS3 is going to be one of the first Blu-Ray players out there, will it really cost half of any other Blu-Ray player and have all the extra high end hardware on top of it?
Sony's only got a little under $3 billion in free cash, how much of that's going to be blown on the launch? Are they going to have to launch this thing as a $500+ console just so they don't have to go further into debt to get it to market?
Title: RE:Blu-Ray and the Cost of a PS3
Post by: kirby_killer_dedede on January 21, 2006, 08:39:18 AM
That's insane! The PS3's a Blu-Ray player and then some. Even if they sell it for 500 dollars, they're taking at least a 300 dollar loss. Insane.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: jasonditz on January 21, 2006, 08:52:43 AM
The numbers in that article just don't add up in a lot of ways... for example, if the Blu-Ray drive by itself costs $100... why on earth will the cheap Blu-Ray players costs $1,000? Are they insisting on 300% markups?
Title: RE: Blu-Ray and the Cost of a PS3
Post by: Bill Aurion on January 21, 2006, 08:56:54 AM
Perhaps to make up for the cost of research and development? I would assume once those costs are taken back they'll start to lower prices...
Title: RE: Blu-Ray and the Cost of a PS3
Post by: KDR_11k on January 21, 2006, 09:43:22 AM
I think someone should tell them that when you're selling a format and the userbase for potential content is tied to the instaled base of the hardware it may be wise not to demand outrageous prices for the hardware?
Title: RE:Blu-Ray and the Cost of a PS3
Post by: BlackNMild2k1 on January 21, 2006, 10:06:10 AM
DVD was the same way when it first came out.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: Renny on January 21, 2006, 11:22:01 AM
DVD also had no real competition. Manufacturers had the early adopters in their pockets. If HD-DVD can come in at a cheaper price, that'll give them a big boost--and a kick to the BluRay camp's nuts--that they're going to need. No one can really afford to rape the consumer with excessive markup this time.
Title: RE:Blu-Ray and the Cost of a PS3
Post by: Arbok on January 21, 2006, 02:56:49 PM
"Even at a pricey $500, Sony will be taking a loss on each machine, just as it did with each earlier PlayStation model. The company will hope to make money selling software for the console down the line--the same strategy Microsoft and Nintendo have taken. "
Doesn't Nintendo make a profit on their systems sold?
"If each game is priced at $50, Microsoft might earn about $25 in profits per game, suggests Carey. If the average Xbox 360 owner buys four games, Microsoft will have recouped the estimated $100 loss."
$25 of profit for Microsoft per game? That seems very, very high unless that was only talking about first party titles. If it was a first party title, there is also the production cost of the game to factor in as well.
Maybe it's just me, but I got a very anti-Sony/pro-Microsoft vibe from the article as a whole.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: stevey on January 21, 2006, 04:31:24 PM
I think ps3 may cost way over $500 looking at all the stuff that they say their adding but it sony and they can just be lieing about what in their system like the last 2 times.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: nickmitch on January 21, 2006, 04:43:04 PM
Why are all of sony's formats supported by porn? It's quite perplexing.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: UncleBob on January 21, 2006, 07:02:47 PM
All formats are supported by Porn. It's the way porn works. In fact, you can generally tell how well a new technology will catch on by how well the porn industry attaches to it.
For example, a major factor for DVDs catching on was because of the porn industry - they're cheap as heck to produce, the skip-to-scene feature works great for viewing a porn flick (or so I've heard), DVDs are much cheaper to ship (in plain, brown envelopes), much easiler to include "free" with magazines... Granted, a lot of these same reasons is why the general market picked up on DVDs so fast, but have no doubt, if it wern't for Porn, much like 900 Phone numbers, Pay-Per-View Television and even the VCR probably wouldn't have rushed into our lives so quickly. Heck, I believe the Porn Industry is pretty much credited with VHS winning out over Betamax.
Title: RE:Blu-Ray and the Cost of a PS3
Post by: Epitaph on January 21, 2006, 07:25:28 PM
Im not sure if im right with this but I think the major reason for the cost is the power within the machine to run the HD video. If you look at the specifications to run HD video on your computer they sujest you have at least 1.8 ghz machine. Not sure one the ram and video capabilities but needless to say it takes alot of power to run HD video. They also have to offset the cost of making it in the first place so the early adopters usually cover those cost. Once those are out of the way then they drop the price.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: KDR_11k on January 21, 2006, 09:28:50 PM
Decoding video is a bunch of vector operations, a worst case scenario for x86 compatible CPUs (and best case for the Cell). It's better to build a dedicated video decoder chip into these, that'll do the same amount of work with much less MHz.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: BlkPaladin on January 21, 2006, 10:52:41 PM
Someone asked about if Nintendo is making money on their console. I would have to say by now they are. A year or two ago they had a bidder war to get another manufacture for the Gamecube and it cost them $99.00 per Gamecube at that time. (They were selling for $150 at the time.)
As for the DVD player they were expensive. I was a semi-early adopter and it cost me $350.00 for a striped down player that now costs $50.00, and at the time there was only about 20 titles avaible in my area.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: BigJim on January 22, 2006, 06:54:56 AM
There's almost always a considerable difference between BOM (manufacturing cost) and retail. If you knew the markups on things from sports watches to even $40 DVD players, you'd crap yourself.
Consoles don't follow the same supply/demand rules as other electronics, as far as pricing goes... or else the 360 would have been something like $1000 itself due to the limited supply. It's already been mentioned that BRD drives will cost in the neighborhood of $100 to manufacture, so the drive wouldn't add much more cost than that to the final price if their goal is to break even or sell at a slight loss.
Their goal is specifically mass penetration through PS3. It's their trojan horse. So even if they sell it at break-even or a partial loss, the rewards of winning the HD format later will be huge. At worst, BRD is a game format like UMD.
Title: RE:Blu-Ray and the Cost of a PS3
Post by: Galford on January 22, 2006, 08:10:02 PM
It will be interesting to see what happens when people start hacking HDDVD and BRD drives? There is going to be a lot of power available to who ever can harness them.
For example, HD-DVD drives require at least a 128 Megabytes of RAM. Early DVD drives required something close too 2 Megabytes...
Title: RE: Blu-Ray and the Cost of a PS3
Post by: MysticGohan on January 22, 2006, 08:27:14 PM
Hmmm... We shall see who will win this Choatic yet unneccessary formatt war. Although I'd think sony would have to be more wary about this. Considering that they lost the last formatt war, ala Betamax vs. VHS Can history repeat itself? Actually... Slightly, different situation but similair methods are being applied in a situation that rises once again! so yeah..!
Title: RE: Blu-Ray and the Cost of a PS3
Post by: KDR_11k on January 22, 2006, 08:41:17 PM
It will be interesting to see what happens when people start hacking HDDVD and BRD drives? There is going to be a lot of power available to who ever can harness them.
Why hack? Just plug 'em into your PC and get on with life.
Title: RE:Blu-Ray and the Cost of a PS3
Post by: jasonditz on January 23, 2006, 05:27:24 AM
Quote Originally posted by: Epitaph Im not sure if im right with this but I think the major reason for the cost is the power within the machine to run the HD video. If you look at the specifications to run HD video on your computer they sujest you have at least 1.8 ghz machine. Not sure one the ram and video capabilities but needless to say it takes alot of power to run HD video. They also have to offset the cost of making it in the first place so the early adopters usually cover those cost. Once those are out of the way then they drop the price.
Yeah, but Sony's managing to pack enough hardware into the PS3 that it's probably a factor of 10 at least more than what's required to decode HD video... and even the "worst case scenario" has them able to squeeze all that plus a lot of other game-specific hardware into a box with a Blu-Ray for $700 or so...
I can't imagine that the cost of the Blu-Ray drive ($100) plus the cost of the rest of the components is any more than $200-$250... charging $1,000 (particularly when a video game system is offering the same media playing capabilities and a lot more for probably half the price) is completely moronic.
Title: RE:Blu-Ray and the Cost of a PS3
Post by: Sir_Stabbalot on January 23, 2006, 11:02:48 AM
I heard that ninty is losing money now per unit of GCs sold. But also that the loss is so small its negated when the first game is purchased.
Title: RE:Blu-Ray and the Cost of a PS3
Post by: stevey on January 23, 2006, 11:20:06 AM
Quote Originally posted by: Galford It will be interesting to see what happens when people start hacking HDDVD and BRD drives? There is going to be a lot of power available to who ever can harness them.
For example, HD-DVD drives require at least a 128 Megabytes of RAM. Early DVD drives required something close too 2 Megabytes...
Title: RE: Blu-Ray and the Cost of a PS3
Post by: kirby_killer_dedede on January 23, 2006, 11:28:15 AM
Stabbalot, I heard that once too, but you must know: Nintendo would never do anything without profit being involved.
Title: RE:Blu-Ray and the Cost of a PS3
Post by: Galford on January 23, 2006, 11:32:19 AM
What the article doesn't elaborate on, is both HD-DVD and Blu-ray have tcp/ip and http connections built into the standard. One "feature" being talked about is content being stored on disk and then having to pay for over the internet to enable.
Welcome to the New World Order...
PS - Edited post so it made sense.
Title: RE:Blu-Ray and the Cost of a PS3
Post by: Epitaph on January 23, 2006, 01:36:57 PM
Quote Originally posted by: Galford I haven't read that article yet, but I 'm not surprised. What the article doesn't elaborate, is both HD-DVD and Blu-ray have tcp/ip and http connections built into the standard. One "feature" being talked about is content being stored on disk and then having to pay for over the internet to enable.
Welcome to the New World Order...
Thats only true if people are willing to put up with it. If people think its gone too far they simply wont support it and things will change. You cant make profit without support.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: wandering on January 23, 2006, 10:02:26 PM
But when high definition Star Wars and Lord of the Rings and Titanic are on the line, it's hard to see people taking a stand....
Title: RE:Blu-Ray and the Cost of a PS3
Post by: Arbok on January 23, 2006, 10:16:45 PM
Quote Originally posted by: wandering But when high definition Star Wars and Lord of the Rings and Titanic are on the line, it's hard to see people taking a stand....
There were a lot of great films on laser disc, which was vastly superior to VHS... yet it didn't catch on. Simply having great movies in slightly better quality will not attract customers, they need more than that, and if they honestly go as far as to charge for extra content (which people will have to access online, ie not average joe friendly) then that's a huge strike against it. Even if they don't, they still have a lot of work to try and convince consumers to adopt another format so soon.
Title: RE:Blu-Ray and the Cost of a PS3
Post by: KDR_11k on January 24, 2006, 02:18:14 AM
Quote Originally posted by: Galford I haven't read that article yet, but I 'm not surprised. What the article doesn't elaborate, is both HD-DVD and Blu-ray have tcp/ip and http connections built into the standard. One "feature" being talked about is content being stored on disk and then having to pay for over the internet to enable.
Welcome to the New World Order...
Ever played Half-Life 2?
Title: RE:Blu-Ray and the Cost of a PS3
Post by: Epitaph on January 24, 2006, 06:27:48 AM
Quote Originally posted by: KDR_11k
Quote Originally posted by: Galford I haven't read that article yet, but I 'm not surprised. What the article doesn't elaborate, is both HD-DVD and Blu-ray have tcp/ip and http connections built into the standard. One "feature" being talked about is content being stored on disk and then having to pay for over the internet to enable.
Welcome to the New World Order...
Ever played Half-Life 2?
If your talking about half-life's 2 copyprotection it was cracked pretty much upon release. The crack just used a fake version of the steam engine and allows you to play.
Title: RE:Blu-Ray and the Cost of a PS3
Post by: Galford on January 24, 2006, 04:37:55 PM
I have never played Half-Life 2. I own an ancient P2-based Celeron system with an 810 video card. For sound I have one of the original AC97 codecs ever made, the Conexant Riptide chipset. To put it mildly, my computer is old.
Wasn't the big thing about HL2 was, when it was released early, no one could play b/c Valve wasn't allowed to release the activation keys early?
Title: RE: Blu-Ray and the Cost of a PS3
Post by: KDR_11k on January 24, 2006, 10:18:41 PM
Epitaph: Yes but who says there won't be a way to crack Bluray?
Title: RE:Blu-Ray and the Cost of a PS3
Post by: Galford on January 26, 2006, 05:50:35 PM
Blur-ray and HD-DVD will be cracked, my guess is first on the PC then the player hacks will come. Such is they way of things...
Title: RE: Blu-Ray and the Cost of a PS3
Post by: Epitaph on January 26, 2006, 08:22:34 PM
Another interesting note dvd-john, the man who cracked the dvd protection has already vowed he will crack hd-dvd and blue ray discs. He also stated he would continue to do this untill the media companys stop putting so many restrictions on the discs.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: UncleBob on January 27, 2006, 04:07:08 AM
Well, that's stupid...
"I'll stop picking locks when people stop locking their doors!"
Title: RE: Blu-Ray and the Cost of a PS3
Post by: KDR_11k on January 27, 2006, 04:28:26 AM
More like "I'll stop picking locks when people stop padlocking my door".
Title: RE: Blu-Ray and the Cost of a PS3
Post by: UncleBob on January 27, 2006, 04:45:21 AM
No, no... I was just point out that he wouldn't need to "crack" things if there wasn't restrictions on them, therefore his statement is stupid.
None the less, no company forces you to buy CDs, DVDs or computer software that has restrictions on it you don't like.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: KDR_11k on January 27, 2006, 06:23:39 AM
Of course not. The problem is that too many people swallow it hook, line and sinker so there's no way to prevent all future releases (and I mean that as in "you won't see a single unrestricted release") from incorporating some idiotic restrictions that only piss people off.
Title: RE: Blu-Ray and the Cost of a PS3
Post by: jasonditz on January 28, 2006, 08:32:39 PM
Better still is when they go the Sony route and use the audio CD you just bought to hack your PC.
Or the Sony route from a few years ago where when you inserted their audio CD in an iMac it would destroy your (non-user servicable) CD-ROM drive.