Blu-ray/HD DVD war to run another 18 months

September 25, 2007

Gownder said Blu-ray’s content advantages are somewhat diminished since the recent decision by Viacom Inc’s Paramount studio to commit exclusively to HD DVD. HD DVD hardware prices have also dropped into consumers’ preferred price range, he said.

“Weakened by these developments, Blu-ray needs to offer a viable hardware model at the $250 price point by Christmas 2007,” he said in the report. “The Blu-ray camp must also stave off further studio defections, and employ more aggressive promotional tactics to counter HD DVD’s recent momentum.”

Forrester said typical owners of high-definition televisions are not willing to pay more than $200 on average for a new HD DVD or Blu-ray player.

“Failure to alter strategy would open up Blu-ray to a possible upset defeat at the hands of HD DVD,” Gownder said. -Reuters
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Note: I own Xbox 360 HD DVD player.

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