Blu-ray DVD drive no bonus for some PS3 buyers

LOS ANGELES (Reuters) - Gamers love Sony Corp.'s (6758.T)new PlayStation 3 for its graphic capabilities and firepower,but the advanced Blu-ray DVD drive is annoying some by raisingthe cost, slowing production and forcing them to buy into aformat they've not yet aligned with.

Sony's move to put a Blu-ray drive into the PS3 video gameconsole is part of the Japanese giant's plan in a high-stakesnext-generation DVD format war that recalls the fierceBetamax-VHS battle, which Sony's Betamax lost.

This time, Sony's Blu-ray is competing against a rivalToshiba Corp.-backed (6502.T) format known as HD-DVD.

Sony said Blu-ray is part of its long term plan to positionits machine as a home entertainment hub, but some experts saythe strategy may be backfiring.

Yankee Group analyst Michael Goodman said that whiledie-hard gamers will buy the PS3 at any cost early on, buyerswho come to the product later will be more price-sensitive.

"Blu-ray is adding $150 to $200 to the product. They'vecreated something that is not for today's market. It's not amarket driver, it's only driving the price higher," he said.

Cymfony, a company which culls trends from posts onInternet sites, reported that positive discussions about HD-DVDwere 46 percent higher than Blu-ray in a survey of almost18,000 posts on blogs, discussion boards and consumer reviewsites from October 1 to November 30.

"Negative Blu-ray conversation indicated a lack of consumertrust in Sony, as well as gamer displeasure with sellingBlu-ray in association with PlayStation 3," said Jim Nail, aspokesman for Cymfony, which culls trends from posts on socialmedia sites.

Hollywood and electronics makers are hoping high-definitionDVDs, with better picture quality and interactive features,will reignite the slowing market for DVD sales. But the formatwar, technical issues and the advent of digital video-on-demandservices are creating hurdles for the new DVDs and players.

Andy Parsons, a spokesman for the Blu-ray Disc Association,called the launch of the PS3 a "turning point" for the format.

"Blu-ray's here to stay. The likelihood of people usingPS3s as DVD players is significant, particularly when you'retalking about millions of consoles Sony expects to sell," hesaid.

There is a good precedent for Blu-ray -- Sony's PlayStation2, currently the dominant game console with more than 106million sold, helped push the standard DVD format. The PS2 cameto market in 2000, about three years after the DVD was firstlaunched.

"We think the same will happen with the PS3 and Blu-ray,"Parsons said.

In the gaming console war this holiday season, Sony's PS3,priced at around $600, faces two main competitors in MicrosoftCorp's (Nasdaq:MSFT - news) Xbox 360 at around $400 and Nintendo Co Ltd's(7974.OS) Wii for about $250.

Microsoft recently added an optional HD-DVD player andbegan offering full-length film and TV downloads inhigh-definition via its Xbox Live online gaming service.

Mark Knox, a spokesman for the HD-DVD consortium, saidoffering HD-DVD as an add-on was an important distinction.

"We know that every HD-DVD drive being sold to Xbox usersis being used to watch films. They're not being forced to buyit," he said. "Every PS3 includes a Blu-ray drive, but thatdoesn't mean every gamer wants to watch a movie on PS3."

John Davison, editorial director of 1Up Network, a gamingnetwork with 13 million monthly unique visitors, said mostgamers are not interested in viewing films on the PS3.

"PS3 will live and die by the games it plays. The fact it'sa DVD player is a bonus, but not why people bought it," hesaid.

[original post: www.hitech-news.info]