Screw Blu-Ray, We’ve Got Digitial

Since the last breath of HD-DVD rumors have been flying about Microsoft’s need (desire?) to get into the Blu-Ray hardware for their 360. The rumor was feasible because Microsoft already spent time working the HD-DVD angle for their “home entertainment” Xbox 360 console.

Although Microsoft’s Shane Kim told Forbe’s, “I can categorically say that we’re not working on a Blu-Ray player for Xbox 360,” there is further proof in Microsoft’s direction: Netflix. From a profit standpoint, Microsoft’s got more to work with in a downloadable digital format with Netflix than they do sending another specification off to manufacturing.

The effort that went into the HD-DVD addon was significant but with risk comes reward, but risk also comes with the chance of failure. Microsoft had to write it off as a failure, do they really need to go through it all again when digital downloads are the future of media? Probably not.

The Xbox 360 is going to be three years old this year, positioning another addon hardware storage player seems like the wrong idea for many reasons:

  • Spend your R&D efforts on the next-generation console, not more fluff addons to compete against Sony.
  • Blu-Ray for movies is still risky, considering the cost of movies in the market (and their slight increase when HD-DVD died).
  • Global adoption of Blu-Ray is still years off

Undoubtedly, Blu-Ray would be a great storage medium for their next-generation console because it could be established as the core storage platform for developers. If the intent is just to play Blu-Ray movies, you’re going to work hard, today, when adoption rates are so low.

Until you can use a Blu-Ray player for both games and movies, stick with digital downloads of movies and retail purchases for games. Maybe next-generation.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 238: No Free PornEpisode 238: No Free Porn

This week’s episode is also abbreviated, as Jordan is somewhere in Pennsylvania looking for a gingerbread house while Paul is still trying to pack his entire NES library into a single suitcase. Jonah and Paul still got in enough time to do a Gaming Flashback on Thief: The Dark Project, and the following news items:

All this and Reader Feedback, too, as well as a new Question of the Week, “If you have the opportunity to read or view a highly anticipated game’s story months before it was released, would you do it or would you deliberately turn it away to preserve yourself from spoilers?” Let us know!

Episode 268: Fake Maple SyrupEpisode 268: Fake Maple Syrup

In this episode of Gaming Podcast, Daniel Quick discusses how to become a true Canadian, while Jonah Falcon talks about making blond, green-eyed characters. There’s no Gaming Flashback this week, but plenty of news items.

This week’s discussion:

  • Nintendo announces XL version of Nintendo 3DS
  • Dev claims Microsoft killed XBLA version of Stranger’s Wrath
  • New users must now pass “review process” to unlock full Diablo III
  • Dragon’s Dogma getting sequels after shipping 1M
  • Valve and Cartoon Network collaboration hints at Team Fortress 2 show

All this, and the Question of the Week is “What weird rituals do you do when playing videogames?”

PlayStation 3: Not About Quantity, About ProfitabilityPlayStation 3: Not About Quantity, About Profitability

The Xbox 360 price drop rumors flow like water and it’s all but officially been announced at this point. What about PlayStation 3 and their price? No.

Nobuyuki Oneda, the Sony’s chief financial officer said, “our plan is not to reduce the price. Our strategy is not to sell more quantity for PS3 but to concentrate on profitability.” (gamespot) This makes complete sense coming from their chief financial officer, as their motivation is to make money, not lose it.

The question remains, how will they actually make money if they’re no longer in the race for competitive market prices? Considering game licensing must Net them some amount of profit Sony’s idea seems to be the exact opposite of their original PlayStation method: saturate the market and sell them all games.

So far we’ve seen very few “need to have” games for the PlayStation 3 console while Xbox 360 continues to build a substantial library and Wii continues to break sales records for apparently no reason. When a game publisher has to decide on a platform to launch a new game, why would they choose the one that doesn’t care to be competitively priced in the market? The one that doesn’t care about quantity of sales?

Sony intends to reverse the entire razor blade philosophy where one sells a cheap razor and charges users for the blades over and over again. Their take on this concept is to sell really expensive razors and put out small half-quality blades. Is that a good market strategy at this point?