Games Industry Wire

Blu-ray production gets cheaper, hoping for cheaper PS3s

by Kiven on January 13th, 2008

..And you think there was no relation between Warner’s decision to move to Blu-ray and cheaper ps3s. Businessweek says: “For months, Sony’s (SNE) PlayStation 3 video game console has seemed like a high-profile boondoggle for the Japanese giant. While Microsoft’s (MSFT) Xbox 360 took an early lead that it later forfeited to Nintendo’s Wii machine, the PS3 always lagged behind. Worse, the machine’s next-generation Blu-ray DVD player and other pricey high-tech parts, which pinched Sony’s profits last fiscal year, look likely to weigh on earnings again this year and next. And analysts are skeptical as to whether Sony can meet its sales forecasts for the console this year.”

But you won’t hear Chairman and Chief Executive Sir Howard Stringer badmouthing the gaming machine. That’s because the millions of PS3s the company has sold since late in 2006 likely clinched Warner Bros. Entertainment’s (TWX) exclusive support for the Blu-ray format.

Warner announced on Jan. 4 that it would release only high-definition Blu-ray movies starting July, ending its support for the rival HD DVD format. Winning Warner’s backing was a coup for the Blu-ray camp, which counts Sony, Samsung Electronics, Matsushita Electric Industrial (MC), and dozens of other consumer-electronics makers among its members. Warner has the industry’s most extensive offering of movies and consistently churns out blockbusters. With five out of seven major studios now on-board, Blu-ray
has the upper hand—perhaps decisively—in the struggle over the next-generation DVD standard.

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POSTED IN: 'Wire' Reports, Business Deals, PS3, Sony