Toshiba said to be losing $200 on each HD-DVD player sold at DVinfo.net

Go Back   DV Info Net > The DV Info Network > Digital Video Industry News

Digital Video Industry News
Events, press releases, bulletins and dispatches from the DV world at large.


Reply
 
Thread Tools Search this Thread
Old June 23rd, 2006, 10:08 AM   #1
Wrangler
 
Join Date: Dec 2002
Location: Mays Landing, NJ
Posts: 11,542
Toshiba said to be losing $200 on each HD-DVD player sold

http://yahoo.businessweek.com/techno...622_113255.htm

Quote:
That's the verdict of market research firm iSuppli, which carried out a so-called teardown of the machine, picking it apart to determine what's inside and how much it cost to build. iSuppli analyst Chris Crotty reckons the internal electronics cost about $674, bringing the total to more than $700 when components such as packaging and manufacturing are included. The players sell through retailers like Best Buy and Target for $499, leaving Toshiba with a per-unit loss of $200 or more.
Boyd Ostroff is offline   Reply With Quote
Old June 23rd, 2006, 10:22 AM   #2
Trustee
 
Join Date: Feb 2004
Location: Brookline, MA
Posts: 1,447
ah...that's so nice of Toshiba. Forfeiting profit for the public good.
Emre Safak is offline   Reply With Quote
Old June 23rd, 2006, 10:50 AM   #3
Regular Crew
 
Join Date: Mar 2006
Location: Seattle, WA
Posts: 158
I think they are trying to go cheap so no one buys blu-ray, if they become the dominant format they will make their money back in a heartbeat.
Mack Fisher is offline   Reply With Quote
Old June 23rd, 2006, 11:58 AM   #4
Inner Circle
 
Join Date: Sep 2004
Location: Sacramento, CA
Posts: 2,488
I'd question the cost estimate given that Toshiba HD-DVD players are just stripped down computers with a few extra output jacks, and basic computers hardly cost anything these days. But hey, if Toshiba wants to give 'em away that's okay by me. As the saying goes, "they'll make it up on volume."
Kevin Shaw is offline   Reply With Quote
Old June 23rd, 2006, 12:00 PM   #5
Regular Crew
 
Join Date: Aug 2003
Location: Oakland CA
Posts: 46
I bought one. It's quite spectacular. The HD-DVD's look great, but the big surprise is how good my "old" SD dvd's look, stunning! Thanks Toshi, for the $200 break. Lord knows I deserve it after paying $3800 for the first wave of 16x9 projection big screens.
__________________
"We are basically free, but who we think we are is not"
Ram Dass
Gene Brockhoff is offline   Reply With Quote
Old June 23rd, 2006, 12:05 PM   #6
Major Player
 
Join Date: Jan 2004
Location: Seattle
Posts: 243
Makes sense.

Sony's going to do the same thing with the Playstation 3.
Toshiba may as well get their product out at cost and get some movies sold.

I have my doubts that iSuppli is right because you never really know what deal is really being cut for components but clearly the Toshiba player is more expensive than what they are charging.

2nd generation units should have more consolidation of parts to reduce the cost and I expect more vendor will jump in at this time.
Harrison Murchison is offline   Reply With Quote
Old June 25th, 2006, 03:09 PM   #7
MPS Digital Studios
 
Join Date: Apr 2003
Location: Palm Beach County, Florida
Posts: 8,531
HD DVDs selling at a loss

Saw this at imdb.com:

"Toshiba Selling HD-DVD Players at a Loss

Hoping to deal Sony's Blu-ray high-definition DVD player a knock-out blow before it even enters the ring, Toshiba has begun selling its own HD DVD player at a loss, the online edition of Business Week reported today (Friday), citing a study by market research firm iSuppli. According to the firm, it costs Toshiba more than $700 to produce each HD DVD player, which it plans to sell at U.S. retailers for $499. Sony's Blu-ray players, by contrast, are expected to display a price of around $999. In its report, iSuppli analyst Chris Crotty commented, "Toshiba wants to get a head start and build an early lead."'

Almost like the current Xbox 360s; they're being sold at a loss of around $100 or so, I believe.

heath
__________________
My Final Cut Pro X blog
Heath McKnight is offline   Reply With Quote
Old June 30th, 2006, 10:18 PM   #8
Major Player
 
Join Date: Aug 2005
Posts: 119
I don't buy it. Consoles have always sold hardware at a loss because they make money on the license from game developers, which is why microsoft gets so butt-hurt when when a bunch of hackers turn an xbox into a PC. If Toshiba owned the HD-DVD codec, mp4v10/h.264.....they don't, then they might adopt such a strategy. Toshiba has no\little vested interest in the format other than what they believe is the future of HD. Try building a car from the parts counter of a dealership and see what it costs you, iSuppli I say thee nay.
Jason Varner is offline   Reply With Quote
Old July 1st, 2006, 12:25 AM   #9
Inner Circle
 
Join Date: May 2006
Location: Camas, WA, USA
Posts: 5,513
I believe that Toshiba owns a number of patents related to HD DVD. If they've done their homework, they make money from the players sold by other manufacturers, they make money from the duplicate houses and from raw media manufacturers. Same deal for Sony et al on the Blu-ray side.

Regarding the codec, both players adopted MPEG2, H.264 and VC1. There are certainly some players who make money no matter how this ends up.
__________________
Jon Fairhurst
Jon Fairhurst is offline   Reply With Quote
Old July 2nd, 2006, 10:58 AM   #10
Major Player
 
Join Date: Apr 2005
Location: Atlanta, GA
Posts: 212
Images: 8
Me personaly, I bought the HDDVD player the day it was available at BB, no regrets now and I don't think I'll ever will.

This thing it's amazin, and even my SD DVD's look amazing. for $599 can't beat it.
__________________
Tomas A. Chinchilla | CANON XH A1, HV20 & HC3 | Retired Cams: GL2, HC1, FX1, Z1, | Final Cut Studio 2
Tomas Chinchilla is offline   Reply With Quote
Old July 3rd, 2006, 09:09 AM   #11
Major Player
 
Join Date: Feb 2005
Location: Seattle, WA
Posts: 219
Samsung has just launched its bluray player this week and Sony has released it's first Bluray burner as well. Check out my post on the DVD section regarding the burner.

Link to cost of HD-DVD and Samsung release at: http://mdn.mainichi-msn.co.jp/busine...bu033000c.html

Now, if someone with an older Ulead Movie studio will try burning some Bluray formated discs on DVD-r or DVD+r and try it on a bluray player... Be interesting to see if contents for Bluray can be burned on a standard DVD like the HD-DVD format allows.
John Kang is offline   Reply With Quote
Old July 3rd, 2006, 09:48 AM   #12
MPS Digital Studios
 
Join Date: Apr 2003
Location: Palm Beach County, Florida
Posts: 8,531
Has anyone burned a high def DVD via Apple (on DVD-r) and tried playing it in an HD DVD player?

heath
__________________
My Final Cut Pro X blog
Heath McKnight is offline   Reply With Quote
Old July 3rd, 2006, 09:52 AM   #13
Major Player
 
Join Date: Apr 2005
Location: Atlanta, GA
Posts: 212
Images: 8
YES!

It plays beautifully, only one issue and that is the Menu layers not working. But if you set the movie to first play it's all good, or you can always choose the chapter on the remote.
__________________
Tomas A. Chinchilla | CANON XH A1, HV20 & HC3 | Retired Cams: GL2, HC1, FX1, Z1, | Final Cut Studio 2
Tomas Chinchilla is offline   Reply With Quote
Old July 3rd, 2006, 10:02 AM   #14
MPS Digital Studios
 
Join Date: Apr 2003
Location: Palm Beach County, Florida
Posts: 8,531
So make no menu, just first play. What about 1080i vs. 720p?

heath
__________________
My Final Cut Pro X blog
Heath McKnight is offline   Reply With Quote
Old July 3rd, 2006, 10:06 AM   #15
Major Player
 
Join Date: Apr 2005
Location: Atlanta, GA
Posts: 212
Images: 8
Tried them both with no issues.

Obviously 1080i native looked amazing, 720p looked great too but compared to 1080i it got 2nd plce for me.

Of course I am not too sure that was a valid test since I took my 1080i material shot with an FX1 and deinterlaced it. The other test was with DV Film Maker and a 24p Conversion........Still looked good.

At the end 1080i wins.
__________________
Tomas A. Chinchilla | CANON XH A1, HV20 & HC3 | Retired Cams: GL2, HC1, FX1, Z1, | Final Cut Studio 2
Tomas Chinchilla is offline   Reply
Reply

DV Info Net refers all where-to-buy and where-to-rent questions exclusively to these trusted full line dealers and rental houses...

Professional Video
(800) 833-4801
Portland, OR

B&H Photo Video
(866) 521-7381
New York, NY

Z.G.C.
(973) 335-4460
Mountain Lakes, NJ

Abel Cine Tech
(888) 700-4416
N.Y. NY & L.A. CA

Precision Camera
(800) 677-1023
Austin, TX

DV Info Net also encourages you to support local businesses and buy from an authorized dealer in your neighborhood.
  You are here: DV Info Net > The DV Info Network > Digital Video Industry News

Thread Tools Search this Thread
Search this Thread:

Advanced Search

 



Google
 

All times are GMT -6. The time now is 11:05 PM.


DV Info Net -- Real Names, Real People, Real Info!
1998-2017 The Digital Video Information Network