Sony Blu-Ray and Toshiba HD DVD drives cost over $400 to produce
According to a research firm, all the materials used for building the next generation DVD drives and the licenses for the codec used will cost somewhere around $400, with most of the money spend on licenses. This already has a big impact on the announced price of PlayStation 3 ($500 - $600, with a loss of about $200 for Sony). However, now you can get a cheap DVD Player for about $30, a HD DVD player with $500 and a Blu-Ray version with $1000.
This will make the adoption of the new standards to be very slow, because of the price of the next generation DVD Players and due the fact there are no movies available yet in this new formats. Also you need to have a HDTV to make it real worth the investment.
This next generation DVD format war might also decide the winner in the next generation gaming console war, the price being a decisive factor.
May 19th, 2006 at 5:51 pm
[…] Sony Blu-Ray and Toshiba HD DVD drives cost over $400 to produceAccording to a research firm, all the materials used for building the next generation DVD drives and the licenses for the codec used will cost somewhere around $400, with most of the money spend on licenses. … […]