Study: High-Def DVD Prices to Fall Fast
Understanding & Solutions says the players' manufacturing cost is falling below $150.
By Swanni
Blu-ray players are now under $300 at some online and retail stores with HD DVD players under $200. But U&S says the manufacturing cost for both formats will fall under $150 in early 2008.
The research group says the lower manufacturing costs will lead to lower street prices.
“Drive, chipset and other system components are now benefiting from economies of scale," says Bill Foster, the group's senior technology consultant. "In early 2008 we’re going to see the 'bill of materials' for a basic High Definition player, in either format, weighing in at less than $150, and that’s going to impact the high street very soon, providing the consumer with a choice of low price players that allow CE companies a margin for profit.”
U&S added that the lower player prices could help decide the format war sooner than anticipated. Blu-ray and HD DVD are rival formats competing for the new high-def disc audience.
“As demand grows and manufacturing volumes build, we’re going to see the costs of releasing on two different formats really start to bite. There may be surprises just around the corner, and we could see a lot more format clarity in 2008," the company stated.
U&S also said it did not believe Paramount's decision last August to endorse HD DVD exclusively has had a serious impact on the format war. (Two studios now support HD DVD while four support Blu-ray; Warner Bros. is currently neutral.)
The research group noted that Blu-ray disc sales have outpaced HD DVD by a 2-1 margin since the Paramount endorsement.
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