It’s official: Toshiba has tapped out, BluRay has won the format battle and Sony’s stock has taken the appropriate upturn. Don’t I feel like a dumbass for not buying Sony stock before Tuesday?
Some of you may recall that I did recently make this call here at MediaJerk. Not that it was a tough call to make. I don’t recall reading anyone — media insider, blogger, reviewer, whatever — who actually disagreed with my assessment. I think I’ll have to find something harder to predict if I’m going to toot my own horn here. Regardless, there you have it. Sort of a no-brainer, really.
However, the article I cited up-top, courtesy CNBC, does make a semi-interesting point. Because of the price war between BluRay and HDDVD, suggests writer Boorsten, “this business may be less profitable than [Sony] originally thought.” I’m not really sure how true that is, though.
Whenever you deal with new media, the first couple generations of product are priced to cover R&D costs. With BluRay, the PS3 had an entire generation to deflect these costs. It’s a granted, I think, that the battle forced Sony to drop the price of BluRay decks before they would have perhaps preferred to do so. However, to some large extent, Sony had to know that Toshiba and their partners weren’t simply going to bend over for BluRay. Further, Sony’s experience with Betamax would have prepared them for the eventuality of price warfare. All of which is to say, I seriously doubt Sony’s going to be hurting financially after this battle.
It helps to be the only game in town.