Blu-Ray hits the skids, numbers continue to decline

By Jack Loftus, GamePro |  Personal Tech, Blu-ray, PS3 6 comments

One of the driving forces behind Sony's plan for the PS3, Blu-Ray, is showing signs of decline.

The cause could be a variety of factors, from the failing economy to the summer gaming doldrums, but the effect is clear: Blu-Ray as a media format is in decline.

The news has to be worrisome for Sony, whose PlayStation 3 console has the Blu-Ray disc format as a cornerstone of its strategy to get a multi-purpose gaming and media hub into homes the world over.

In response to the sluggish sales, Sony even went so far as to drastically slash its Blu-Ray player prices to the magic US$200 mark, a la Microsoft with the Xbox 360, with other models going for as low as $250 as of this writing. Tech blog Engadget called the new price points "unquestionably delectable," but another observer at the Industry Standard said the cuts and a number of other indicators betray the fact that conditions may not be so rosy.

For example, in the latest Wired magazine, Sony and Microsoft went so far as to include a free Blu-Ray disc, the seven part film noir flick Coma, as part of a full page insert.

"I don't know how much this is costing Sony and its partners, but it can't be cheap -- Wired's paid circulation is 706,494, and this press release indicates that other magazines may be involved," wrote Industry Standard writer Ian Lamont.

Sony is betting the price cuts (and the PS3) will bolster Blu-Ray in time for the winter holiday, but Lamont is wary--especially as more and more consumers turn to the Internet and services like iTunes for their HD content.

"Sony better hope that mainstream consumers feel the same way [about the price cuts], or the company risks another weak Christmas for Blu-ray this year -- and losing out in an even bigger way when consumers begin to turn to the Internet for their HD content," he said.

6 comments

    Anonymous 3 years ago
    The issue is product.Ask most Blu-Ray fans and they'll say they haven't purchased much lately.The amazing release of "How the West Was Won" came out on BD in the past weeks, but quite frankly, not a lot else.Meanwhile studios continue to focus attention on DVD releases. Next week will find new "special editions" of classic Hitchcock films on DVD, but not Blu-Ray. Many favorite legacy films have yet to be released on BD, as well as films that were available on the competing HD DVD format.In short, Blu-Ray numbers will decrease if studios don't actually release any films on BD that people want to buy.IMHO that's the biggest issue with Blu-Ray right now.
    Anonymous 3 years ago
    the disc included in the "Wired" magazine is only 25 minutes long.It's not the whole movie.It's called pro-mo-tion.
    Anonymous 3 years ago in reply to Anonymous
    of course in order to play the blu-ray disc youll need a blu-ray player and if you have one of those youll surely have bought at least one ultra definition better than you blu-ray dvd to prove to your ego that all that expense was worthwhile. No doubt you will even have already bored your friends witless with your new 'I'm better than you show off device'
    Anonymous 3 years ago
    Why is anyone surprised Blu-ray is tanking? The hardware, and especially the software, is much too expensive. Upconverted DVD looks just fine on my 50" plasma and I have no interest in switching to a much higher priced format with very limited movie selection. Neither do any of my friends and family members... high prices as well as tepid interest from everyday people is what will kill off Blu-ray in a year or two, or relegate it to tiny niche status at best.
    Anonymous 3 years ago
    To what numbers does your headline refer ("Blu-ray... numbers continue to decline?"How can you write such a headline without providing the numbers on which that headline is supposedly based.The latest numbers Sony released show that more than two million PS3s sold in the U.S. this year alone through August, a 92% increase over 2007.How do you or the others you reference in your post construe that to mean there is a problem?Scott Hettrick
    Anonymous 3 years ago in reply to Anonymous
    The article doesn't say that there's a problem with PS3 sales, it says there's a decline in the sales of Blu-Ray media. You are correct, the numbers should be provided. However it's been shown during the format war between Blu-Ray and HD DVD that while PS3s are capable of playing BR movies, that is not the purpose for which most buyers use them. The attach rates among PS3 owners had always been lower than the numbers for HD DVD owners (that is, the average number of movies a person who owns a PS3 or BR player owns). This is a number that Toshiba and it's partners constantly cited, the fact that the number of movies purchased by the average owner of an HD DVD player was far greater than the number purchased by the average PS3 owner.Certainly more PS3s were sold than HD DVD players, meaning a larger installed base and therefore a larger total number of movies being sold. Yet the more important stat in this case is this: PS3 buyers are buying PS3s to play games on, not watch movies on. This is compounded by the fact that many owners of PS3s (and XBox 360s) don't even have HDTVs. They are completely happy playing on standard definition TVs, and therefore would not benefit from the enhanced resolution of BR discs. Another large chunk of consumers is completely satisfied with DVD quality picture and see no need to replace it, especially when it means upgrading the entire home theater in order to get the full benefits of the new technology. New television sets, and new audio components compatible with 7.1 surround are required to get the full-effect (though they are quite compatible with 5.1 systems). Also with the upconversion technology enhancing the consumer's existing collection up to near-HD quality (Toshiba's new XDE upconverting DVD player is said to be nearly indistinguishable from Blu-Ray from normal viewing distance on 50inch or smaller screens), there is just no compelling reason for many to go out and buy expensive new players during this economic slowdown.I don't think Blu-Ray will really take off until movies are the same price as their DVD counterparts and players hit the $199.99 mark. People won't bother to spend 25% more to get the same movie in HD, unless they're true enthusiasts ... and that's a very small part of the market.

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