Comments on: The Format Wars: Sony Proves that It’s the Player, Not the Game, That Wins http://www.businesspundit.com/sony-format-wars/ Entrepreneurship, Startup Companies and Business Philosophy Fri, 20 Nov 2009 20:31:15 -0600 http://wordpress.org/?v=2.8.5 hourly 1 By: Drea http://www.businesspundit.com/sony-format-wars/comment-page-1/#comment-6601 Drea Thu, 03 Jul 2008 15:09:28 +0000 http://www.businesspundit.com/sony-format-wars/#comment-6601 How much they're making off Blu-Ray licensing deals is indeed The Question. I couldn't find it anywhere...if someone knows, please tell me. The official licensing page, of course, is also veiled in mystery: http://www.blu-raydisc.info/license_app.php As far as recouping $4 billion goes--I would argue that a) if they make enough off Blu-Ray licensing deals (would probably take global distribution to get that kind of revenue) and b) they recoup the profits through another sector, then it was worth it. Even if the format wars are eventually won by downloads (which I think they will be, but not before Blu-Ray gets a good chunk of money back), I think the prestige and history associated with the deal have a kind of soft value that will continue to get Sony ahead in future home entertainment deals. Then there's the matter of backdoor deals and ethics. This article is based on the assumption that business deals are done in the traditional way, through strategic moves and convincing tactics. Cheating is an entirely different article. The truth as I saw it in the media reflected the usual corporate competition. If all those reports didn't reflect reality, then...sigh. We're being deceived left and right. How much they’re making off Blu-Ray licensing deals is indeed The Question. I couldn’t find it anywhere…if someone knows, please tell me. The official licensing page, of course, is also veiled in mystery: http://www.blu-raydisc.info/license_app.php

As far as recouping $4 billion goes–I would argue that a) if they make enough off Blu-Ray licensing deals (would probably take global distribution to get that kind of revenue) and b) they recoup the profits through another sector, then it was worth it. Even if the format wars are eventually won by downloads (which I think they will be, but not before Blu-Ray gets a good chunk of money back), I think the prestige and history associated with the deal have a kind of soft value that will continue to get Sony ahead in future home entertainment deals.

Then there’s the matter of backdoor deals and ethics. This article is based on the assumption that business deals are done in the traditional way, through strategic moves and convincing tactics. Cheating is an entirely different article. The truth as I saw it in the media reflected the usual corporate competition. If all those reports didn’t reflect reality, then…sigh. We’re being deceived left and right.

]]> By: Brad http://www.businesspundit.com/sony-format-wars/comment-page-1/#comment-6599 Brad Thu, 03 Jul 2008 14:24:25 +0000 http://www.businesspundit.com/sony-format-wars/#comment-6599 Don't forget how much Sony had to bribe the movie houses to get them to switch. $400-500mm to Warner, $120mm to fox. That is a lot of cash and lost profits due to the payouts. Also, Sony has lost $3 BILLION on the PS3. Is $4 billion worth it to win the format war??? http://gizmodo.com/344680/the-real-reason-warner-went-blu+ray Don’t forget how much Sony had to bribe the movie houses to get them to switch. $400-500mm to Warner, $120mm to fox. That is a lot of cash and lost profits due to the payouts. Also, Sony has lost $3 BILLION on the PS3. Is $4 billion worth it to win the format war???

http://gizmodo.com/344680/the-real-reason-warner-went-blu+ray

]]> By: Ryan http://www.businesspundit.com/sony-format-wars/comment-page-1/#comment-6583 Ryan Thu, 03 Jul 2008 11:23:05 +0000 http://www.businesspundit.com/sony-format-wars/#comment-6583 I think it would be a really interesting business analysis to see whether, at the end of the day, Sony stood to make more money by winning the HD format wars or winning this generation of console wars. Perhaps Sony was willing to take a short term loss for a long term gain? Again, it all comes down to the numbers and I'd really like to know what they stand to make from the sale of each Blu-Ray disc. I think it would be a really interesting business analysis to see whether, at the end of the day, Sony stood to make more money by winning the HD format wars or winning this generation of console wars. Perhaps Sony was willing to take a short term loss for a long term gain? Again, it all comes down to the numbers and I’d really like to know what they stand to make from the sale of each Blu-Ray disc.

]]> By: Ryan http://www.businesspundit.com/sony-format-wars/comment-page-1/#comment-6581 Ryan Thu, 03 Jul 2008 11:18:40 +0000 http://www.businesspundit.com/sony-format-wars/#comment-6581 The critical question is how much money Sony makes on the sale of Blu-Ray discs. As that format supplants standard DVD, and billions of Blu-Ray discs get sold, will Sony profit from each one? The critical question is how much money Sony makes on the sale of Blu-Ray discs. As that format supplants standard DVD, and billions of Blu-Ray discs get sold, will Sony profit from each one?

]]> By: firerobin http://www.businesspundit.com/sony-format-wars/comment-page-1/#comment-6555 firerobin Thu, 03 Jul 2008 04:36:01 +0000 http://www.businesspundit.com/sony-format-wars/#comment-6555 Nice post. My brother just got a PS3 and he uses the Blu-Ray more than he actually plays the video games. I'm just thankful Blu-Ray won the format war. Nice post.

My brother just got a PS3 and he uses the Blu-Ray more than he actually plays the video games.

I’m just thankful Blu-Ray won the format war.

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