NEC expects to control over half the sales of Blu-ray products in the next two years by offering deep price cuts, which other companies have stated are necessary for the market to grow.
NEC’s competition includes Matsushita, Broadcom and Sigma Designs. In a press release, NEC said it will take over 50% of the global Blu-ray chip market by March 2011 from an expected 40% at the end of March 2009.
By selling the world’s first chips that pack on a single sliver of silicon signal processors and memory to control graphics, audio and other functions, NEC aims to raise sales of its Blu-ray products to $378 million in the year ending March 2011.
15 Comments
Toshib's super upconvertion will blur the line between real HD and upconvertion just that much more and will make Blu Ray's job just that much more impossible. Sony finally wins a format war only to find out the format itself is doomed.
In the end Sony might end up making a few dollars off of Blu Ray but considering the amount of time, money, and work that went into the format its basically guaranteed to be the single biggest failure in the history of the home theater market. Sony invested over 3 billion just in the R&D phase alone. Then you add on the billions they have lost and continue to lose on the PS3, the lost profits from the paystation division stemming directly from the choice to put a BD player in every PS3 and the delays that were encountered because of that decision. Basically anything less than Blu Ray taking over the Market from SD DVD and staying on top for a good 4-5 years would be considered a failure of maga proportions.
I'm still 50/50 if I think bluray will go the way of laserdisc. DVD's had the advantage of having a purpose on regular tv's, bluray has the disadvantage of needing HDTV's to give the consumer a benefit, so they have to rely on the adoption of other technology.
Again there are certainly some people who are legitimately seeking HD content but they are in the minority and even the ones that are seeking HD content dont have to buy Blu ray. They can again just get some HD cable package and upconvert thier SD DVD's.
The bottom line is Blu Ray is simply not that important of an upgrade to most people unlike the switch from VHS to DVD which most people couldnt wait to do. Blu Ray is to the point where it is only going to see majot growth by infiltrating the general population and the bottom line is very few people in the general population want anything to do with Blu Ray and that isnt going to change simply by lowering the price, at least not for the majoirty. Most people are perfectly conetent with SD DVD and who can blame them. Its the most successful home theater format that has ever existed. It has a MASSIVE library of titles and the prices for most titles is pretty damn cheap. They are easy to use, have extras that people enjoy and the Jump to Blu Ray just pales in comaprison to the difference between the VHS DVD switch.
Sure Blu Rays numbers will continue to rise, but they wont rise high enough to ever get the format out of niche status. Again I cant see Blu Ray getting past 25-35% of the market. Its been 3 years and its at less than 2% now. Its not like Blu Ray is competing with a failing format. SD DVD is still thriving and as I have stated a couple of times on these board, SD DVD grew by another 2 million homes in 2007, more than HD DVD and Blu Rays numbers combined.
Dont get me wrog I dont think Blu ray will cease production of throw in the towel. Even with 25% of the market, some of the companies wil make significant money. Sony just wont be one of them as they have invested more money into Blu Ray then they will most likely ever make back.
They are not. 40% price drops are on the way since they are gathering dust on the shelves. The economy is a mess in the US and people are not buying these things. The inventories are huge and virtually all manufacturers are dropping prices on LCD and Plasma. Bluray is is BIG trouble. People don't NEED this crap, they are losing their jobs and can't afford gas or food.
Best Buy
LN52A650 was$3199.99 now $2499.99 price drop of $200+$500 off sale
LN46A650 was $2499.99 now $2059.99 price drop of $200+$240 off sale
http://hdguru.com/swelling-inventories-force-another-hdtv-price-drop/254/
As a side note, and in keeping with the idea of how some Americans see Canadians, when I'm not drinking beer in the Rockies I'm trying to keep my igloo from melting thanks to global warming. That is all.
Are you from the feature? You can guess 10 years from now?
DVD is running 12 years and you can't compare to Blu-ray in their 3rd year now. When DVD was 3 years old people were talking just like you now, because DVD is expensive, blank media is expensive, lots of DRM bla bla. Until now you can still find VHS in the local stores or even in some Blockbuster and Hollywoodvideo!
During DVD time we encountered global economic resession and all and it still survive. I have no doubt that Blu-ray will survive and take over DVD in the future. Just not today or in a year. Numbers are growing like it supposed to be so come back in 10 years and post again if anything changes.
One shop keeper i spoke to also blamed the recent European football championship, the Wimbledon Tennis tournament and the upcoming Olympic games for the fast rise in HDTV sales, and not to mention a big rise in sales on HD DVB-S settop boxes.
HD-TV and high def is booming over here. You can't buy non-HD equipment in the shops. Price stunting is really progressing after the soccer championships. More and more channels are high def nowadays so it makes sense to actually move on. Also, video rental stores seem to get more blu-ray titles. So I don't know about our American friends, but make sure you don't end up with old shit as the only one in the world :P If the US economy tanks, I am afraid of the impact in the interdependant world market these days. I could see the euro bubble burst as a lot of the crooked and failing securities in the US were offloaded to folks to the east. '
The freakin oil speculators and our busy body president along with the corporate shills we call congress and senate has things all screwed up and artificially inflated.
If the european market was so dominant in the HDTV realm, I doubt that the US HDTV sets would be getting prices slashed by 40-50%! Especially, when the dollar is worth so little...I think a euro is about 1.58 at the moment.
I hope I am wrong, but I think we haven't seen the bottom yet and I suspect that it will not be totally isolated to the United States. I think I should be buying Chinese money right now!!
Read this if you don't believe me:
"Europes economy takes a hit"
"Just a few weeks ago, Europe thought it could escape the worst of the global slowdown. Now it looks like the euro zone, the world's second-largest economy, is headed for a hard landing and perhaps recession, compounding growth troubles around the world."
http://online.wsj.com/article/SB121614579356955235.html?mod=googlenews_wsj
Most of the TV sets carry an "HD ready" label with a 1366*768 resolution, only few and only big TV sets are actually "Full HD" with a 1920*1080 resolution and most people seem to prefer a cheap DVD player over rather more expensive Blu-Ray equipment
We're not all slaves to fashion. It's nice that you have people waiting on you hand and foot and you light your Cuban cigars with American $100 bills, but not everyone has the means to buy a new television set every few years.
P.S. - Can I borrow $20 off you till next payday? I'm good for it... ask anybody.
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