Blu-ray player production cost to drop in 2010
- Posted June 20th, 2009 at 18:37 EDT by Eric Blattberg
- 20 Comments
Taiwanese disc drive makers anticipate that the cost to produce BD players will drop to $50 USD in 2010, according to DigiTimes Systems.
BD players currently cost $100 USD to produce, with the majority of that cost taken up by chipsets and pick-up heads.
Competition among the makers of those components is increasing, however, and the cost to produce them is lowering. Those costs will be passed on to the producers of BD players.
Precisely how much this $50 reduction in production cost will affect retail prices is unknown, but it’s safe to assume that the reduction in production price will be passed on to consumers soon.
Comments
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Beasley2K |
Beasley2K- 7:14pm BST - June 20th, 2009
- 3
Being as one's incorporated into my PlayStation anyway, I have no need for Blu-ray player, but this may be bad for Sony. If the price of Blu-ray players themself is lowered, people will be less inclined to buy a PlayStation - especially those that only intend to get Sony's super-console for the sole purpose of Blu-ray playback
However, the revenue earned from increased Blu-ray sales will allow Sony to support their console even more, as well as the reduced cost making it subsequently cheaper to produce PS3s as well, as the incorporated Blu-ray player will won't cost Sony as much, and will therefore make Sony's rumoured price-drop more beneficial. Demand for PlayStation 3s will also rise, generating Sony even more revenue. Personally, I think this could be a significant move in contributing to Sony's competition with Microsoft.
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The costs of producing a Blu-ray player is potentially what's holding Sony back. The PlayStation 3 is currently approximately £100 dearer than the Xbox 360, but the price of Blu-ray players are more than £100 dearer than DVD players, the Xbox's equivalent format. It's virtually impossible for DVD players to become much cheaper than they are now, due to being insignificantly cheap, whilst any price cut made to a Blu-ray player will be a significant amount, as being considerably expensive will mean any reduction in its price will result in a proportionately high drop: a 25% reduction of DVD players will mean £5 of the average item's price tag, whilst a drop in a Blu-ray players price by the same proportion will result in saving £30-50. Should the Blu-ray player ever become as cheap as a DVD player, the price of a PS3 will be almost equivalent to a 360. Sony wil benefit greatly from such a reduction in production costs, and that's only when considering the costs of the Blu-ray player. Should the cost of any other components become cheaper, the PlayStation will easily be as cheap as the Xbox, and as the Xbox is the cheapest it can possibly be (due to the fact that DVD players cannot possibly decrease in value even more), Sony may well soon become the dominant business in this console war!
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neoxthexone |
neoxthexone123- 7:24pm BST - June 20th, 2009
- 4
@3
My mind has just exploded because of your comment
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PsychoMantis |
KuruptX- 7:38pm BST - June 20th, 2009
- 5
@1 a price drop on the blu-ray players has nothing to do with the PS3 at all, it will only kill sales. A price drop for the blu-ray payer can do damage because people will no longer buy a PS3 for a cheaper blu-ray solution.
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AaronSOLDIER |
AaronSOLDIER- 7:54pm BST - June 20th, 2009
- 6
For those saying its bad for the PS3 because people will buy standard blu ray players:
The PS2 had the exact same problem, but look at its sales, after 2+ years DVD players were less than half of the PS2, and thats exactly whats happening now. Rapture said he saw one for $120, I myself have seen them around that price too. Yes it may affect PS3 sales, but very minimally. Blu Ray is one of the PS3's strong point, not just for playing movies, but for developers making big games too.
So its bad for PS3 sales, but its better overall because the price of the PS3 will drop. The PS3 doesnt have to keep up with the standard blu ray player' prices, just like the PS2 didnt, and look at it, its the best selling console of all time (PS2)
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Alpha2
- 7:55pm BST - June 20th, 2009
- 7
Of course this is what they're waiting for. They keep saying they lose 50 bucks on every system, now here's their chance. If the bluray drive production costs drop 50 and they can reduce the cost someplace else that's instantly a chance to drop the price like people keep demanding. sadly I dont think we'll see a 100 dollar price drop in 2010 but any drop is better than nothing.
Remember the PS3 is a bluray player too, any cost reduction for the drives carries over to any else that uses bluray as well.
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AaronSOLDIER |
AaronSOLDIER- 7:58pm BST - June 20th, 2009
- 8
Oh and also: they could cut $50 in August or around then, and another $50 next year - which would be better I think
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Smithy2306
- 9:12pm BST - June 20th, 2009
- 9
@4 lmfao! Anyways, this will be good for Sony as that will help reduce costs and spurn a price drop. Ubit sales for PS3 are good at the moment but it needs a software sales boost. A price drop along with the great amount of titles on the way will surely be great for Sony
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GranTurismoOwnsPs3
- 9:27pm BST - June 20th, 2009
- 10
Cheapskates who want a ps3 cannot save an extra $50 ? that is sad.
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chomperbull
- 12:03am BST - June 21st, 2009
- 13
the people to cheap to pay an extra $50 for a ps3 aren't going to buy games so a price drop without profit is pointless
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bobtheduck
- 4:16am BST - June 21st, 2009
- 15
@chomperbill
I always take all my games, average them out with the cost of my system.
Which is better? 410 dollars for 1 game, or 400 dollars with no game? Obviously 410 dollars for one game is better, so... um... Yeah, dropping the price 50 dollars would indeed help everyone involved... Sony wouldn't get any more profit off systems sold, but they'd sell more systems meaning they'd get more royalties from games, etc
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DigitalBeast
- 4:39am BST - June 21st, 2009
- 16
@3 "as the incorporated Blu-ray player will won't cost Sony as much" You sure do talk a lot. Lets hope you're not a president in the future... :) Bad things can happen if you aren't clear.
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rotwieller
- 9:30am BST - June 21st, 2009
- 18
cheap blu ray player=more blu ray discs sold=cost to make disc lowered=cheaper games perhaps?
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McGriddles |
McGriddles- 5:31pm BST - June 21st, 2009
- 20
@3
Pretty sure that Sony understands that if they lower the price of bluray then that will hurt ps3 sales. They'll probably just lower the ps3 prices and keep their BR player at the same price it is now to counter some of the lost profits from the ps3 price cut and also to give conumers more incentive to buy a ps3 over a BR player.
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