The next generation DVD format war has been a persistent theme on this blog, given my longstanding interest in standards processes. This format war is far from over, though this story has given the HD-DVD camp renewed momentum.
Given that the penetration of HD television sets is still relatively small (and the penetration of HD-capable players even smaller), this is clearly not about profitability.
What matters in this war? Price of players? The Sony PS-3 (even though its sales are languishing)? Availability of movies?
Update (2007-08-30): Take a look at this article over at CNET. How much of a difference will this make? If many consumers are enticed by this and purchase it, will that drive the Blu-Ray only studios to provide HD-DVD content? Or, will consumers shun this inexpensive device because of the division in content?
Update (2007-08-31): Do you think the points raised in this article, if true, will make a significant difference?
Update (2007-09-07): I found this commentary illuminating ... and there was a small bit of data included, instead of only announcements that amount to posturing.
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