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The Format War could be over
....and the winner just may be HD-DVD.
Despite the fact that Blu-ray discs have outsold HD-DVD discs ever since Blu-ray first emerged onto the market place, it seems new leaked information has perhaps sent a preemptive shockwave that could perhaps shake the foundations of the HD industry. Theres only ONE retailer that could possibly single handedly take control of this format war: Wal-Mart. What did they choose? HD-DVD, baby. Apparently they are outsourcing with a company in China to produce $200 HD-DVD players...thats more than half a price cut.
This may belong in the Tech forum, but video games play into this as well. The PS3 sales arent too impressive so far, and with this announcement, its gonna be interesting to see what Sony does to help fuel the Blu-Ray camp.
http://gear.ign.com/articles/782/782359p1.html
WalMart to sell $199 HD-DVD player in Q4 2007?
Breaking news may have great impact on format war.
April 20, 2007 - In breaking news today, it would appear that mega-retailer WalMart has contracted a Chinese manufacturer to produce millions of low-cost HD-DVD players. Though somewhat obfuscated by translation issues and the breaking nature of the news, the current internet consensus suggests that Taiwan based manufacturer Fuh Yuan, in cooperation with TDK, will produce the blue laser drives for 2-million HD-DVD players. Broadcom will reportedly supply the system-on-a-chip decoder, and China Great Wall will handle final assembly. The deal represents around US $100,000,000, and it is reported that a new manufacturing plant has already been opened to fulfill the order.
Speculation suggests the players will arrive at retail in late 2007 and will be priced between $199-299. At such cost, WalMart's HD-DVD drives will be far below the current low of $399 for Toshiba's HD-A20 player, and will look cheap compared to the lowest priced Blu-ray hardware on the market today ($599).
If the current details of the plan prove to be true, WalMart's support of HD-DVD will have a significant impact on the next-gen DVD format war. The American retailer operates on a high-volume, low-margin business plan of market saturation, which is exactly the approach required to drive one format or the other to preeminence.
Stay tuned for updates and confirmation as the story develops.
This might have some drastic consequences. And I mean, DRASTIC. Those studios that chose to exclusively support blu-ray...well, they wont be able to sell their HD movies at Wal-Mart, since they are going to be pushing HD-DVD. And since Wal-Mart is the biggest retailer in the universe......uh oh. What is Sony gonna do?
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