Research/analyst firm Understanding & Solutions has issued a report today saying that Paramount's switch to go exclusive HD DVD has failed to turn the market in favor of that format and that Blu-ray continues to dominate the market with stronger studio support and sales volumes.
If they can't get it done with the cheapest players and three of the biggest movies of the year in "Transformers" and "Shrek the Third" from Paramount/DreamWorks and "Bourne Ultimatum from Universal," it's hard to see how them improving their chances.
I wonder how Microsoft/Toshiba are feeling about that $150 million investment, especially since Toshiba's earnings have taken such a hit.
Here is the U&S report in full:
The fast-approaching holiday season is a key milestone in the success of High Definition disc formats in the USA, according to a timely market report by Understanding & Solutions. Performance of both Blu-ray and HD DVD during this second holiday season is crucial in establishing the new generation of optical discs, and may bring the market a step closer to resolving the war between the competing formats.
“Blu-ray and HD DVD player prices have been falling since the summer, culminating in Toshiba’s loss leading sub-$100 HD DVD player, available in the USA last month for a limited time,” says Jeremy Wills, Consultant at Understanding & Solutions. “Price reductions in the USA have continued into December, with Blu-ray players dropping below $300 for the first time, and HD DVD players below $200.”
Understanding & Solutions’ Senior Technology Consultant, Bill Foster adds, “Drive, chipset and other system components are now benefiting from economies of scale. In early 2008 we’re going to see the Bill of Materials for a basic High Definition player, in either format, weighing in at less than $150, and that’s going to impact the high street very soon, providing the consumer with a choice of low price players that allow CE companies a margin for profit.”
In Western Europe by the end of 2008, Understanding & Solutions predicts average player prices (as opposed to entry level model pricing), for HD DVD and Blu-ray of $275 and $475 respectively, with the yet-to-be-launched European 80GB PS3 retailing at just over $500.
Furthermore, by 2011, if both formats still remain, HD DVD and Blu-ray players will both retail at below $100.
“Crucially,” says Wills, “Blu-ray benefits from stronger Hollywood Studio support and represents a greater proportion of High Definition disc production volumes and disc sales. To date, Paramount’s move to sole support of HD DVD has failed to turn the market, despite the HD DVD exclusivity of key titles ‘Transformers’ and ‘Shrek the Third’. Notably, Blu-ray still represented over 70% of High Definition video sales in the USA during the week ‘Transformers’ was released on HD DVD.
“As demand grows and manufacturing volumes build, we’re going to see the costs of releasing on two different formats really start to bite. There may be surprises just around the corner, and we could see a lot more format clarity in 2008.”
Despite all this action in the disc market, consumer confusion still persists. The importance of providing a coherent message through strong retailer support is essential, as many buyers still don’t know what additional inputs are required in order to view High Definition content on a High Definition TV. That said, consumer interest in displays continues unabated. By the end of this year, 34% of US homes will own a Hi Def display, rising to 90% by 2011. In Europe, uptake is slower, with 20% ownership by the end of this year, rising to 66% by 2011.
SANTA MONICA, Calif., May 14, 2007 (BUSINESS WIRE) -- The wait is Ogre with the announcement that the Shrek(R) the Third(TM) video game from Activision, Inc. (Nasdaq:ATVI) has shipped to retail stores nationwide. The fate of Far Far Away is in gamer's hands as they assume the role of their favorite characters from the film - Shrek(R), Donkey, Fiona, Puss-in-Boots, Artie and Sleeping Beauty - and embark on an all-new adventure to save the land from the clutches of the evil Prince Charming. The Shrek the Third video game is based on DreamWorks Animation's highly anticipated feature film, which opens on May 18.
"Activision's Shrek the Third game captures the film's signature humor as it takes gamers on a grand journey featuring original characters and storylines created exclusively for the game," said Kim Salzer, Vice President of Global Brand Management, Activision Publishing. "Players will enjoy hours of fun and engaging gameplay as they travel through the Shrek universe in 20 action-filled levels and encounter a cast of twisted fairy tale characters such as Pinocchio, Prince Charming and a dim-witted Cyclops."
Shrek the Third the video game takes players on an epic journey through magical worlds while mastering each character's special moves and abilities, battling villains, gathering collectibles and joining friends to complete challenging mini-games in either single-player or two-player multiplayer modes. The game also introduces two new playable characters from the movie - Fiona's rebellious cousin Artie and her fellow fairy tale princess Sleeping Beauty.
The Nintendo DS(TM) and Game Boy(R) Advance versions of the Shrek the Third video game offer players unique gameplay experiences. The Nintendo DS version is the first DS game to offer wireless cooperative multiplayer gameplay through all levels. Told from Donkey's point of view, the Nintendo DS game allows players to assume the roles of Shrek, Puss-in-Boots and newcomer Artie, and journey beyond Far Far Away with the help of Merlin's magic wand. Shrek and friends must work together to solve puzzles and defeat enemies while overcoming a band of Prince Charming's henchmen.
The Game Boy Advance version closely follows the storyline of the movie as the characters complete great quests that end with them saving Far Far Away from the villainous Prince Charming.
Additionally, the game features a bonus sneak peek at Bee Movie Game, based on the upcoming animated feature from DreamWorks Animation which releases in November 2007.
The Shrek the Third video game is available now for the Xbox 360(TM) video game system from Microsoft and the Wii(TM) for a suggested retail price of $49.99, the PlayStation(R)2 computer entertainment system for the suggested retail price of $39.99, the Game Boy Advance and Nintendo DS for a suggested retail price of $29.99 and the PC version for a suggested retail price of $19.99. The PSP(R) (PlayStation(R) Portable) system version will be available in early June for a suggested retail price of $39.99. The console, PSP system and PC games have been rated "E10+" ("Everyone 10 and older" - cartoon violence, crude humor), the Nintendo DS has been rated "E" ("Everyone" - cartoon violence, comic mischief) and the Game Boy Advance has been rated "E" ("Everyone" - cartoon violence) by the ESRB.
Xbox takes the leading role in living-room entertainment, bringing summer’s biggest movie-inspired games to life.
REDMOND, Wash. — May 10, 2007 — The summer blockbuster movie season is quickly approaching, and soon fans everywhere will be lining up around the block for four exciting new Xbox 360™ games inspired by this summer’s big-screen favorites and a limited- edition console that will have fans of “The Simpsons” dreaming of donuts.
Whether gamers want to save the universe, explore a new one or just escape from the summer heat, Xbox 360 lets them jump into the cast as they become the lovable Shrek®, infamous Captain Jack Sparrow, master magician Harry Potter or aspiring French chef Remy the rat. Gamers will control their destiny as they experience firsthand the action, adventure, fun and romance that have made these films a hit with all ages. Gamers can dim the lights, grab some popcorn and create their own summer blockbuster magic with Xbox 360.
Those who can’t get enough of “Shrek the Third” should not despair. Xbox 360 lets players experience the signature humor and outrageous adventures of the lovable hero long after the movie credits roll. Play as Shrek, Donkey, Puss In Boots, Fiona, Arthur and fellow fairy-tale heroine Sleeping Beauty to save Far Far Away from Prince Charming and his army of villains. Gamers will be challenged to rescue their pals, face off against Charming’s henchmen, gather collectibles, test their gaming skills in 20 movie-based and game-exclusive levels, and engage in various single-player and multiplayer minigames.
Rated E10+; ERP: $49.99 (U.S.); game release date: May 15, 2007; movie release date: May 18, 2007
“Pirates of the Caribbean: At World’s End”
(Disney Interactive Studios)
Based on both the second and third films of the blockbuster franchise, “Pirates of the Caribbean: At World’s End” brings players deeper into the pirates’ world with a chance to play as their favorite stars: crafty Captain Jack Sparrow, swordsmith Will Turner or daring Elizabeth Swann. Gamers will relive the swashbuckling adventures of the crazed pirates and creative swordsmanship of the silver screen, and then go beyond the film to experience new locations, an extended story and a unique ending. They will also enjoy sword-assisted acrobatics, swashbuckling action and classic dueling with unique gameplay.
Rated T; ERP: $59.99 (U.S.); game release date: May 22, 2007; movie release date: May 25, 2007
“Ratatouille”
(THQ Inc.)
Summer starts cooking with Disney/Pixar’s “Ratatouille,” the story of a young rat named Remy who dreams of becoming a great French chef, despite the obvious problem of being a rat. With this game, players can relive all the film’s most thrilling and hilarious moments. From the underground sewers to the bustling streets of Paris, they will dash, swim, glide and slide through five action-packed, visually stunning worlds filled with dangerous enemies, intense heists and perilous missions. Gamers can go head-to-head with their friends in multiplayer minigames or navigate their way through a sensational rat race that turns the culinary world of Paris upside down.
Rated E; ERP: $49.95 (U.S.); game release date: June 26, 2007; movie release date: June 29, 2007
“Harry Potter and the Order of the Phoenix”
(Electronic Arts Inc. and Warner Bros. Interactive Entertainment).
Magic makes a colossal comeback as Harry returns for his fifth year of study at Hogwarts in the most authentic Harry Potter game to date. Players will explore the many key locations at Hogwarts in precise detail, each one a visual match to its film equivalent, while being engrossed in the thrilling adventures outlined in the rich narrative of the book. They can choose to go to class, or play Gobstones or Wizard Chess, with no prescribed way to complete the game; the choice is theirs as they experience more freedom than ever before to customize their time at Hogwarts.
Rated E10+; ERP: $59.99 (U.S.); game release date: June 25, 2007; movie release date: July 13, 2007
“These action-packed Xbox 360 games let kids and adults alike take all the adventure and excitement of this summer’s hottest films home with them,” said “Xbox Dad” columnist and family gaming expert Duncan Mackenzie. “I can’t think of a better way to spend some quality time with the kids than to turn our favorite movies into an interactive experience, chatting and laughing as we take on the role of our favorite characters.”
100 limited-edition “Simpsons” Xbox 360's to be Won..
In addition, people everywhere will be seeing yellow as “The Simpsons” takes Xbox 360 by storm later this summer in advance of the famous Springfield family’s big-screen debut on July 27, 2007. Xbox 360 is partnering with FOX to help promote “The Simpsons Movie,” offering fans the chance to get their hands on one of 100 limited-edition “Simpsons” Xbox 360 Pro consoles through a series of special events and promotions. For anyone who is drooling like Homer about how to win, more details will be available at http://www.xbox.com.
Beyond gaming, Xbox 360 is an all-in-one entertainment center that allows people to watch their favorite DVDs, listen to cinematic soundtracks, or put their friends and family in the spotlight with photo slide shows. They can also download popular movies and TV shows (available only in the U.S.) and sneak a peek at trailers for upcoming movie releases on Xbox LIVE®, while the Xbox® Family Settings feature helps families feel confident that children are playing in a safer, more secure gaming environment. Boasting the largest social network in the living room, with more than 6 million users, Xbox LIVE connects members across 25 different countries, making it easy to find the friends, games and entertainment they want from the moment they power on their Xbox 360 system.
Come and discuss all aspects of your Xbox 360 Entertainment system in our 360-Hq Forums.. We have many gamers, technical guys, achievement hunters and much more.