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Sony Doubles Down on HD

Feb 28, 2008  •  Post A Comment

Sony is looking to exploit its victory in the high-definition DVD format war.
A week after rival Toshiba said it would discontinue its HD DVD format, Sony unveiled four home entertainment systems designed to enhance sound from Blu-ray DVD players. Sony also is taking a more prominent role in high-definition TV production by starting a partnership to produce liquid crystal display panels with Sharp Electronics.
The joint venture, which is 66% owned by Sharp and 34% by Sony, will start production next year and will make as many as 72,000 panels a month at Sharp’s plant in Osaka, Japan, the companies said in a statement this week.
As for the home entertainment systems, all will be available by this summer, with prices ranging from $200 for an 800-watt surround-sound system to $500 for a 900-watt system that includes a CD-DVD player, Sony said in a statement.
Sony spokesman David Migdal said the company won’t comment on the Blu-ray victory or how it will impact strategy.
With the format war settled, Sony will try to reverse results of its lagging electronics unit while turning around a DVD industry where sales fell last year for the first time. While the Sony electronics division’s 10% revenue growth for the quarter ended Dec. 31 exceeded the parent company’s sales increase, the unit’s operating profit fell 7% on price decreases.
Meanwhile, U.S. consumers spent about $300 million on high-definition discs while total spending on DVDs, including rentals, fell 2.9% to $23.4 billion, according to trade group Digital Entertainment Group. Studio heads supporting Blu-ray, including Peter Chernin, president of Fox parent News Corp., say high-definition DVD sales will triple to $1 billion now that the format war is settled.

27 Comments

  1. With 483 movie titles out there in HD DVD and the upconvert feature for older DVD’s, I won’t be in a rush to pay premium prices for a blu ray player.
    HD DVD owner.

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  3. Sorry I should have said “Internal player/recorder”

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