Analyst: Blu-ray may have killed PS3

In his latest commentary, analyst Rob Enderle of TechNewsWorld gave his opinions about Sony‘s Blu-ray. He stated that Blu-ray is facing a very serious problem, and the PlayStation 3 may be the biggest culprit to blame.

The analyst said that he was convinced that Blu-ray would have “toasted” the HD-DVD format by this time if it wasn’t for the price point of the technology. This assumption was based on the idea that “Sony would never be stupid enough to price itself out of the game console market, effectively giving it to Nintendo Latest News about Nintendo and Microsoft.”

“Instead of the PS3 ensuring Blu-ray’s success, right now it appears that Blu-ray may have effectively killed the PS3, at least in terms of market leadership,” adds Enderle.

Enderle also shed some light as to why Dreamworks and Paramount supported the HD-DVD. He explained that while there seems to have been some US$ 250 million in incentives doled out, the more compelling reason was that the two companies saw Blu-ray’s failure coming and abandoned ship.

The move by Dreamworks and Paramount, he concluded, effectively ensures that “Blu-ray will lose whether HD-DVD wins or not.”

Such a scenario, Enderle says, is possible if the price point of players for both formats don’t drop to US$ 200 and below. This, he says, could stagnate the market and compel consumers to skip the generation altogether.

“In other words, while Blu-ray can’t win, in my view, there is still an excellent chance the market will simply bypass both if one doesn’t ramp to high volume this year. In that instance, everyone loses,” the analyst said.

In his latest commentary, analyst Rob Enderle of TechNewsWorld gave his opinions about Sony‘s Blu-ray. He stated that Blu-ray is facing a very serious problem, and the PlayStation 3 may be the biggest culprit to blame.

The analyst said that he was convinced that Blu-ray would have “toasted” the HD-DVD format by this time if it wasn’t for the price point of the technology. This assumption was based on the idea that “Sony would never be stupid enough to price itself out of the game console market, effectively giving it to Nintendo Latest News about Nintendo and Microsoft.”

“Instead of the PS3 ensuring Blu-ray’s success, right now it appears that Blu-ray may have effectively killed the PS3, at least in terms of market leadership,” adds Enderle.

Enderle also shed some light as to why Dreamworks and Paramount supported the HD-DVD. He explained that while there seems to have been some US$ 250 million in incentives doled out, the more compelling reason was that the two companies saw Blu-ray’s failure coming and abandoned ship.

The move by Dreamworks and Paramount, he concluded, effectively ensures that “Blu-ray will lose whether HD-DVD wins or not.”

Such a scenario, Enderle says, is possible if the price point of players for both formats don’t drop to US$ 200 and below. This, he says, could stagnate the market and compel consumers to skip the generation altogether.

“In other words, while Blu-ray can’t win, in my view, there is still an excellent chance the market will simply bypass both if one doesn’t ramp to high volume this year. In that instance, everyone loses,” the analyst said.