Tuesday, February 12, 2008

Wal-Mart killed HD DVD

The format wars are over, whether Toshiba/HD DVD wants to admit it or not. Two big announcements put the nail in HD's coffin. Best Buy announced that they were going to support Blue-Ray as the format of choice for high definition DVDs and Netflix announced they were going to exclusively carry Blue-Ray for high def DVDs.

Stick a fork in HD DVD, it's done. Sure, it will die a lingering, wheezing death, but it's done for.

Now what does this have to do with Wal-Mart? See if you follow my reasoning...

Wal-Mart has been touting very low cost HD players, and when Wal-Mart's involved, you can kiss your margin good-bye. Why buy a Blue-Ray for $400 when you can buy a HD-DVD player for $100.

But from a retailer stand point, do you want to sell a bunch of $100 that you make no money on, or do you back the more expensive format that still has good margin and draws more affluent customers willing to spend the extra money not only on the format but then are more likely to buy other services and accessories?

Of course, all of this is just an educated guess on my part.

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Anonymous Anonymous said...

I don't know dude. I respect that your a walmart hater of the nth degree, but your logic strikes me the same as that of the Goracle. Hot or cold, rain or shine, it must be global warming's fault.

5:41 AM  

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