PS3 Price Drop, Blu-Ray Wins the Format War

July 12th, 2007

First was the elimination of the 20GB model, which from the onset was a horrible idea… Who the hell would want a system without a wireless controller and 40GB less storage space for only $100 less. Then came the price drop on the 60GB to $499!

The move by Sony was initiated by a variety of factors I am sure. One of their claims was due to production line improvements obviously with the Blu-Ray. Second has to be to increase sales. Third had to be the 360 Elite and it’s $479 price tag. And lastly, to increase Blu-Ray sales.

The first reason I can buy for sure… as issues and errors diminish this decreases your costs to produce a unit.

Second reason… increase sales. It appears the drop has already taken effect. PS3fanboy reports that there was a 2800% increase in sales in the first day alone. Obviously not much can be drawn from one day, but it still demonstrates some potential.

The third reason… 360 Elite competition… in my opinion is a big factor. If you are to compare the two units which are now only separated by $20 now, the only reason to really go the Elite is for the game selection. Well maybe also the new IPTV coming up. But other than that, to get your 360 Elite System to where the PS3 is currently, look on spending another $100 for the wireless connector and another $200 for an HD-DVD player. This means my 360 Elite unit now costs $779. As I have stated previously, these are two items I can not look passed when making my decision. In fact the wireless alone would make my decision final. Plus online play requires monthly memberships.

Last reason.. dominate the High Definition disc market. While a lot of people might disagree with this as even a consideration in the whole equation, I see it being the biggest factor. There has to be something else in it for Sony to see their Blu-Ray format triumph over HD-DVD. Especially after such past attempts like Memory Stick.

As reported by Home Media Magazine, between January 1st and March 31, 2007, of the 1.2 million HD movies sold, over 800K were on Blu-Ray. This was clearly the result of the PS3. People were not rushing out to buy the $1,000 stand-alone Blu-Ray player. This latest console price drop is only going to increase this spread to the point where HD-DVD will potentially die.

While this HD disc market has been fragmented, the adult industry, which was fully responsible for the VHS win some 20+ years ago, has also been fragmented. There is no hard stand. Money is big in adult these days, and they want to sell discs. Selling both platforms only improves the chance of sale. Do not forget the emergence of the web, and its effect on the adult industry since the last format war. I can guarantee that discs in the adult market are not selling like VHS used to. So, in theory, there are 3 formats this time around and consumers already associate adult with web.

While the adult industry wavers without a real care (they own the web) and XBOX 360 Elite showed no preference, the next movie format will be determined by a video game console… the PS3. Congratulate Blu-Ray in taking the title.

PS: Sony also announced there will be a new 80GB PS3 model with the hit game Motorstorm included for $599.