Reply to Re: Oh-oh. Toshiba selling at a lose

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Posted by Chuck Olson on 01/16/35 11:46

"asj" <kalim1998@yahoo.com> wrote in message
news:1146371738.333872.62270@i40g2000cwc.googlegroups.com...
> Some tough talk from Panasonic. I think Toshiba is done for.
>
> http://news.digitaltrends.com/article10170.html
>
> In comments to Reuters, Kazuhiro Tsuga, an executive at Japan's
> Matsushita, has stated next-generation Blu-ray and HD DVD formats will
> never merge. "We are not talking and will not talk," he said. "The
> market will decide the winner."
>
> Matsushita is the world's largest consumer electronics manufacturer and
> is a strong supporter of Sony's Blu-ray next-generation DVD technology.
>
> Tsuga speculated that, while Toshiba is the first to market with HD DVD
> systems, the company would not be able to sustain selling HD DVD
> players at prices as low as $499. He estimated Toshiba is taking a loss
> on each unit sold. Matsushita's Panasonic-branded Blu-ray DVD players
> are likely to hit the U.S. market mid-year at prices in excess of
> $1,000. "It's now a test of physical strength," he said, indicating
> Matsushita was working hard to lower production costs and see a
> per-unit profit on Blu-ray player sales from the start.
>

I think the winner will depend not on the player but on which format has the
most top-notch movies available. Having a low player price is certainly an
advantage, but without the movies, the player is useless. If having a head
start means more movies will be on the HD-DVD format, it might well be the
winner, but eventually the guy that puts the most bucks in the right hands
will come out on top.

Chuck

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