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April 30, 2008 10:43 AM PDT

Blu-ray player sales down despite format victory

Looks like it wasn't the HD DVD/Blu-ray battle that was keeping potential customers away from high-definition video players after all.

The NPD Group released some of its retail sales tracking data Wednesday that showed sales of Blu-ray standalone players (not a PlayStation 3, combo player, or PC with Blu-ray drive) had mostly decreased since the beginning of the year.

Standalone Blu-ray player unit sales in the U.S. decreased 40 percent from January to February and saw a very slight increase (2 percent) between February and March, according to NPD.

HD DVD players fared even worse--player unit sales dropped 13 percent from January to February, and 65 percent from February to March--which was expected. Toshiba stopped production of HD DVD units in February, and the format's promotional group disbanded in March.

So what does this mean for Blu-ray player vendors? Why haven't sales experienced any sort of substantial uptick without a competitor? Prices offer one clue. Blu-ray player prices were at their peak for the year in mid-March, around $400. During the holiday shopping season the average price had been closer to $300.

But more likely is what NPD's high-def video analysts have been harping on for a while: that DVD is "good enough" for most consumers. And that the picture offered by a Blu-ray Disc and accompanying player doesn't appear so overwhelmingly better than a standard DVD and an upconverting player that many consumers can't justify the dramatically increased cost.

To that point, sales of significantly less expensive upconverting DVD players have actually increased 5 percent over the first quarter of 2008, compared with the same quarter a year ago. Standard DVD player sales dropped 39 percent over the same period.

Blu-ray player prices are going to have to drop dramatically, to around $200 probably, to make themselves more attractive to consumers outside of the early adopter/home theater enthusiast crowd. Sony, one of the largest producers of Blu-ray players, says $200 players aren't likely until next year at the earliest.

Originally posted at News Blog
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Add a Comment (Log in or register) 15 comments
by longaway April 30, 2008 11:20 AM PDT
Betcha those $200 Blu-ray players aren't going to be the magical saviour that so many think. Virtually every single analysis of the situation forgets the most important component: the television. When the cost of a truly decent HDTV (quality and size of at least 40 inches) is less than $500, that's when stand alone Blu-ray player sales will increase, as well as Blu-ray media sales. Until the average consumer has a television worth showing Blu-ray on, they're smart enough not to bother.
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by Earthanoid April 30, 2008 1:46 PM PDT
Is it really appropriate to not include PS3 sales? It should, at the least, be considered as a secondary figure. Everyone I know who wanted a Blu-ray player bought a PS3, since it is upgradeable and comparable in price to stand-alone players. Right now its really the best choice for a Blu-Ray player, even if you never play games on it.
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by rickbroida April 30, 2008 2:26 PM PDT
To me this is a no-brainer: No one wants to pay $350+ for a DVD player, Blu-ray or otherwise. We've been paying $50 for them for, what, a decade now? Get the prices below $100 and they'll fly off the shelves. The manufacturers are just being stupid about this.
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by Ksal005 April 30, 2008 4:38 PM PDT
Hope BluRay, their manufacturers and studios get the memo. This overpriced nonsense is going to kill this format if they don't settle down.

..."that DVD is "good enough" for most consumers."

This is sad. BR needs to get it together.
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by rsutton57 May 1, 2008 10:17 AM PDT
With the economy sliding into the tank and people worrying about buying gas to get to their jobs, buying a Blu-Ray is not high on their lists. I have an upconverter and a HD-DVD player that upconverts. With HD DVD movies selling for $10 there is no reason to move to Blu-Ray until the units come down in price. There are nearly 500 HD DVD titles (most available on line) so I will still have something to watch until Blu-Ray gets cheaper.
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by davidblatt May 1, 2008 10:36 AM PDT
Slow supply leading to price gougers doesn't help much either; also promises for new unit release dates not met. Why buy dmp-30 when dmp-50 is supposed to be nearly same price; same with sony's units?
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by Ggush May 1, 2008 10:58 AM PDT
As a previous commentor posted, not sure why PS3 isn't included. It's upgradeable and I know I for one bought the PS3 for the Blu ray player, but as well, because it can be upgraded unlike the other stand a lone Blu ray players...Why buy a stand a lone, when a couple years down the road the next version comes out and you can't upgrade your existing player.
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by guinzuz May 1, 2008 11:18 AM PDT
I completely agree with the other comments posted about the PS3. Why would anyone spend $400 on a stand alone player when they can spend the same amount and get a Blu ray player that also happens to play games - i.e. a PS3? If PS3s aren't included in the numbers, perhaps a better estimate of popularity would be to measure sales and rentals of Blu ray titles rather than the players themselves.
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by pmh1939 May 1, 2008 2:25 PM PDT
PS3 isn't the best way to go, it's almost the only way to go BR if you want a reliable product that will actually play the discs. Both the hardware and software are too expensive, and the playback problems are very damaging for sales. Frankly, most of the stores showcase the Samsung players on Samsung TVs. To my eyes, the images look cartoonish, oversaturated in color and artifact laden. It's too bad. I am thinking of getting a PS3 to augment my HD DVD player/collection. Problem is everytime I get to the point that I'll go for it I read about all the problems people have with BR disc playback and about the inability of Blue Ray players to decode the more advanced audio codecs.

My A20 with all the firmware updates is completely trouble-free and the discs produce spectacular video and audio. Of course, we had to get rid of the one system that works and was relatively affordable.

The solution is simple: produce a reliable product that actually works and is affordable and consumers will buy it. Continue to hawk overpriced players with incomplete capabilities and discs that cost 2x to 4x the price of DVDs and most people will say "No Thank You."

Sony should market a videophile version of the PS3 that comes with the BR playback remote, and has the highest quality chip sets. At least those of us who value great video performance would buy them - provided, of course, the software is priced more reasonably than currently.
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by lee_jor May 1, 2008 2:59 PM PDT
Since most of the current Blue-Ray machines can't be upgraded, why not wait. As we all know, the prices will come down too.
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by sonymaster101 May 1, 2008 4:44 PM PDT
aactually, the ps3 can decode all of the most advance audio codecs used in blu ray, yes, including dts hd. the chipsets are of the HIGHEST quality. the audio and video decoding are done by the cell, not some cheap audio processor. And the movies dont look cartoonish, they look and sound brilliant.
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by AnthonyNYC May 1, 2008 6:13 PM PDT
I guess most early adaptors bought the BluRay players and PS3's and now what is left is trying to sell this expensive format upgrade to normal family folks who have bills and high gas prices to worry about. That will be the challenge of BluRay over next few years if it wants to ever surpass DVD in sales one day.
Personally, I am fine with upconverting players and look forward to promised "Super Upconverting" Player bu Toshiba that takes 9 frames of video and fuses them together to make a true 1920 x 1080 P frame.
If they can deliever real HD quality from regular DVD discs, that will be awesome!!
Let's see if they can deliver by next 6 months.
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by PFreak May 6, 2008 9:14 AM PDT
The PS3 is a great, error-free blu-ray player. I've watched hundreds of movies on it and never seen a single artifact, never had it freeze up. Never had long loading times. Nothing but great looking movies everytime. Watching an old format like HD-DVD is for queers. Why not fire up the betamax while you're at it and maybe play some Pong.
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by PFreak May 6, 2008 9:16 AM PDT
They can't deliver true HD from an upconversion. I have two great upconverting players and questioned the need for a blu ray player. Once you see it there is no question. The best upconverting player looks like crap compared to a true HD recording.
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