Posted by asj on 06/23/06 15:22

So, how long will a company that is much smaller and profitable than
the
Blu-ray manufacturers be able to subsidize their folly?

This confirms my conclusion that Blu-ray will win out handily in the
long
run.

1. More studios backing it;
2. More and bigger manufacturers backing it;
3. Toshiba subsidizing its players and losing money on it.

http://www.digitalhomecanada.com/content/view/1342/51/

Toshiba is intent on getting an early lead in the battle for the
next
generation of DVD technology and they are willing to take a loss on
every
unit they sell according to market research firm iSuppli Corp .

iSuppli reached that conclusion after they recently dissected
Toshiba's
new HD-A1 HD-DVD player and priced all of its components.

According to the company's teardown analysis, the Bill-of-Materials
(BOM)
costs alone for the HD-A1 exceeds its $499 U.S. retail price. The
HD-A1's
estimated U.S. $674 cost figure excludes costs for manufacturing,
testing,
cables, remote control and packaging. Those additional costs could
easily
push the total cost of the HD-A1 to more than U.S. $700 per unit.

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