Toshiba gets jolt of HD DVD reality
Toshiba was forced to cut its sales forecast for its HD DVD players.
(Credit: Toshiba)You've heard the expression "underpromise, overdeliver." Well, Toshiba execs are getting a little taste of "overpromise, underdeliver" when it comes to sales of HD DVD players.
According to a Reuters report today, "The Japanese electronics group now expects to sell 1 million next-generation optical disc players and recorders in North America by the end of calendar 2007, down 44 percent from its previous estimate of 1.8 million unit sales." Toshiba's also pulling back on its projection of selling 3 million units of HD DVD players and recorders worldwide by the end of the business year to March 2008, though smartly, execs shied away from giving any new estimates.
While the overall sales numbers haven't been great for HD DVD players, the more ominous number may be the figure buried at the end of the story. Toshiba reported that "More than 60 percent of all dedicated next-generation DVD players sold in North America used the HD DVD format as of the end of May." That's not counting PS3 sales--and that's really not good, considering standalone Blu-ray players cost a couple hundred bucks more than HD DVD players and seem like a stupid purchase with the PS3 out there at basically the same price. True, this month Toshiba got a lift after lowering the price on its entry-level HD DVD player to $299. But that's gotta put a real squeeze on margins. We're talking zero.
No one's throwing in the towel yet, but the real question is just how much money is Toshiba willing to lose to try to win. Anybody got an estimate?
Hunkered down in New York City, Executive Editor David Carnoy covers the gamut of gadgets and writes his Fully Equipped column, which carries the tag line "The electronics you lust for." He's also the author of "Knife Music," a novel. E-mail David. Follow David on Twitter. 
BLU-RAY gives you more content, capacity, bandwidth, studio support, industry support, and better reliability making HD DUD obsolete.
Both HD-DVD and Blu-Ray players lack Wi-Fi. As much as these players cost, they should be able to read (honestly
and write) to both formats, have HDMI 1.3, Ethernet, WiFi, Tru HD sound decoders plus analog outputs. They should also be able to play Divx, DVD-audio, SACD, ALL DVD+R/RW, DVD-R/RW and DVD RAM discs--period.
Blu-Ray players cost twice as much for half the functionality. What's up with that?
Sorry. They all stink!
Back to the article, Toshiba can only catch up if they have more support at the low-end from brands like Insignia, Ilo, Apex, etc. with players around $100. It always comes down to price. Availability of media is secondary. If enough people own HD-DVD's, all studios except Sony (they'll cave, too) will release the media. If enough people own Blu-Rays', Universal will cave. All of the studios are waiting it out. There's hardly any content out there. This format war is also delaying broadcast/cable HDTV. More people would buy HD televisions if they truly saw the picture quality--period.
This format *cough* war will go on for quite sometime.
We heard in January that Sony wasn't upset about the abysmal holiday sales figures because they had a supply problem; Microsoft had great figures only because they had a whole year to advertise and sell. Just wait until the U.S. summer holidays and the PS3 will trounce them.
Um, in case I misheard (which I didn't), didn't the PS3's sales figures get bested by an 8:1 ratio to the Wii as of last week (6/3/07)?!?! The freaking Wii!!! It doesn't even have video.
The only market that the PS3 is beating the XBOX 360 sales is in France (many attributing this to the French's disdain for anything American). Sony is relying on their PS2 and PSP sales to keep them even in the game.
Anecdotal evidence: I went to the local Best Buy to check out a few games and to see the Elite. There was a case of PS3s sitting there. I asked the sales guy how they were selling. He kinda winced, kinda shrugged. "Few people want to buy 'em when they can't check out the graphics. Our floor model died and hasn't been fixed because it was too costly to go through one a month." The Elite, on the other hand, has been selling decently when they connect their video through it. The HDMI cable really makes the HDTVs pop with a much crisper picture. At the local Gamestop, they have had a few PS3s in stock all year. They haven't kept ANY HD DVD attachments for the 360 in stock. They're gone as soon as they are put on the shelf.
Toshiba is just at the head of the curve on dropping the price. Wait until after the mid-summer holidays. People will be getting their fiscal year raises and looking to spend. How many are frugal and how many are looking to spend a boatload on something that won't last til Christmas for twice the price?
Sony and Disney won't save Blu Ray.
http://www.tvpredictions.com/toshibarecorder061307.htm
Washington, D.C. (June 13, 2007) -- Toshiba yesterday introduced in Japan two set-tops that can record high-def programming and playback HD DVDs.
That's according to an article by TWICE Magazine.
The publication reports that the device has a built-in recordable drive and dual tuners so it can record two high-def programs at the same time.
The Toshiba 'Vardia' RD-A600, which will be available in Japan by the end of June, will cost $1,600 while the Vardia RD-A300 will cost $1,200.
Toshiba did not reveal when the combo recorders would be available in the United States. Currently, there are no Blu-ray or HD DVD recorders available on the U.S. market.
?At this time, there are no specific plans to launch this model in the U.S. The introduction in overseas markets will be decided in light of the situation in each market keeping in mind the growth of recorders in each specific market," said Jodi Sally, a Toshiba marketing vice president, according to TWICE.
Toshiba said the RD-A600 can record roughly 78 hours of high-def programming to a hard drive while the less expensive RD-A300 can record 39 hours of HD.
Both models also include a HD DVD recordable drive so you can record programs on a HD DVR-R disc or transfer them from the hard drive to the disc.
" Blu-Ray players cost twice as much for half the functionality. What's up with that? "
huh? PS3 does Everything you asked for, right now, today. Period. (except DVD-Audio, my apologies). It can even send all your media, whether stored locally or on a PC to a PSP through the internet. It pulls directly from Vista for playlists, media, etc.
"Sorry. They all stink!"
Ps3 is expensive, but it does (nearly) everything you asked for...
let's discuss this further, reach me at:
http://forum.affiliatebot.com/register.php
To all the HDDVD buyer take them back and purchase a PS3 or a Stand alone BluRayPlayer. Sell your HDDVD's on Ebay to any saps that will buy them.
Interesting article on how Blu-Ray is outselling and dominating HD-DVD. I mean it must be superior because it's outselling players and now movies than HD-DVD right? Well...not exactly as that figure is distorted by the PS3. Granted the PS3 is a viable player but seriously past history has shown that gaming consoles have notoriously POOR drives (meaning they break very quickly)-this has plauged the PS, PS2, XBOX and to a lesser extent 360(Only lesser because the WHOLE system dies instead). Give it some time and I'm sure the PS3 will start to die and people will not be too happy to spring $600 for a new one. Conversely my original stand alone DVD player still works after something like 5 years of constant use and has since been relegated to the spare room where it still see's a fair amount of use.
BTW- You say Toshiba is under-delivering...yeah they could be doing better but the price drop should help plenty. If they are really comitted they will drop it to the magic number of $199. The price drop may have come too late as they had a golden opportunity to get some market saturation being first to sale but have now lost it due to the PS3-and let's face it that is the savior of Blu-Ray as it's no coicidence that movie sales only outsold HD after it's release. Oh yeah...Toshiba might be a tight squeeze at 299 but Sony is losing it's a$$ on each PS3.
So yes, the Blu-Ray outsells HD-DVD but picture QUALITY is the same or better on HD-DVD so far. Which one will "win" the next gen war? I don't have a clue and quite frankly I could care less as I'm just going to wait until one does as I really don't want to spend money on a library of movies that becomes obsolete. Either format is superior to DVD by a fair amount and will likely be the last format as we have basically reached the limit of what the human eye can differentiate...I mean anyone would be hard pressed to tell the difference between 1080p and 1080i or even 720p.
HD-DVD has done better elsewhere around the world. Apart from the PS3, even here the format has more than held its own own. The basic problem for HD-DVD is that they [i]can't exclude[/i] the sales impact of the PS3 as a video player, even if it's getting smacked upside its head as a gaming console, its intended primary mission. Third place amongst the next-iteration consoles--not "next-gen" since the anti-Wii fanatics point out that console's lack of cutting edge tech, even though Nintendo [i]proves[/i] that it's really all about [i]gameplay[/i], after all--the PS3's sales performance is still powerful enough to smoke the [i]best[/i] numbers that Toshiba can put up with their combined standalone models' sales numbers. And if Sony does cave and follow through with the rumored price drop to try to stir up sales as a [i]game console[/i], it will only get worse for HD-DVD.
Unless...Microsoft decides to start selling their HD-DVD drive for $49.95, and cuts the price of the various 360s in kind. After all, that's what loss leaders are for...gaining and keeping control of the market. But it's Redmond, and getting them to actually DO something like that will be next to impossible. In the end it's why they made the hi-def movie drive [i]an option[/i], in case the other format won.
a lot more movie companies with the bigger better movies supporting blu-ray.
Plus, most of the movies on HD-DVD suck.
- Sony must pay you well David
- by DCBRONCO June 17, 2007 7:40 PM PDT
- Remove the Sony hand from your back and write an honest story.
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