seems to be a calm before the DVD format storm. Both sides are
gathering up the resources and allies in order to out-do the others. Toshiba
HD DVD just gained a very powerful, but perhaps risky, partner. Toshiba
is going to allow Chinese DVD makers manufacture HD-DVD players. These
are the same manufacturers that caused the current DVD player price war
and make those cheap 'Wal-Mart
is now clear what Toshiba is focusing on. They are not going to focus
on making money via their $999 HD-DVD players, but rather, the format
itself. China is going to flood the market with cheap HD-DVD
players and fast; this is what Toshiba wants. These low-cost players
are set to come out months before Sony
can get Blu-ray players out and for a whole lot less.
This move by Toshiba addresses two of the four items
we talked about a few weeks ago on why HD-DVD or Blu-ray might fail.
The players are going to be low cost, and play upon the public nonchalance.
People don't care what format it is as long as it works and it's not
hard to use. The more options you give the more confusion you cause,
and therefore, less are sold. But if the majority of the players have
HD-DVD and are cheap, they will sell.