Blu-ray won the battle will it win the war?
The last three years has seen a huge increase in the number of HDTV's in American households. In my opinion the obvious reason is they became more affordable to the average consumer. People can buy high quality sets for around $1000. I think the difference between HDTV and standard TV is undeniable. I argue most people who look at the two displays side by side would agree. Sales suggest people do in fact believe in the difference. It's safe to say that if a person questions whether or not they should buy an HDTV the answer is unequivocally yes. More channels, more programs in HD, and lower prices make HDTV a logical choice. The unanswered question is will the Blu-Ray Disc technology catch on and revolutionize the in-home movie experience the same way DVD did at the beginning of this decade.
February 2008 was a huge month for Blu-ray. Mega retailer Wal-Mart announced it will exclusively sell Blu-ray disc instead of both Blu-ray and HD DVD. On February 19 Toshib, the main corporation backing HD DVD, announced it would stop producing HD DVD players and essentially forfeited the format war. Adding to the Blu-ray victory party, major Hollywood studios Universal and Warner Brothers both committed to releasing Blu-ray discs exclusively. Released in 2006 Blu-ray fought HD DVD in a 2 year format battle that left consumers in a dilemma. The lack of stability in the HD movie market kept both formats from making an impression. The battle ended on February 19, 2008, but the next major question remains: is Blu-ray worth it.
When Blu-ray players hit the market, they cost $1000. Thanks Sony. Not an easy price to pay after buying a $2000 1080p TV and not having very many movies to choose from. Then in November 2006 Sony released the Playstation 3 game console, which was Blu-ray compatible and "only" cost $600. No matter what anyone tells me Playstation 3 is the reason Blu-ray won the format battle. The Blu-ray function on PS3 is a bonus not a necessity. It's success depends on the quality of the games not Blu-ray compatibility. Nintendo released its Wii console the same week and to date more than doubled PS3 in sales because the games were more attractive to consumers. Nonetheless Blu-ray became an option for anyone who did buy a PS3, and at $600 (now $500) it was the cheapest Blu-ray player on the market.

So far sony sold 4.2 million PS3 units in the United States and the price of Blu-ray players dropped from $1000 to $300. PS3 drove the price of standalone players and drove the entire technology to victory over HD DVD. As of June 2007 there were 100,000 Blu-ray players sold and 1.4 million PS3s sold. HD DVD could not compete. Microsoft, which backed HD DVD, did not make its PS3 counterpart Xbox 360 HD DVD compatible. Instead Microsoft released an add on HD DVD drive for the 360. The mistake here was people had to chose to buy the HD DVD drive and consumers have shown that it's not a choice they want to make. PS3 sales are not increased by Blu-ray, Blu-ray is rather the beneficiary of PS3 ability to play the discs. This is something that the numbers clearly reflect. Blu-ray accidentally ended up in over 4 million homes while HD DVD accidentally landed in 0. Good move Sony. Blu-ray won the format battle with HD DVD, but will it win the war with the consumers? Stay tuned.
