How Can Sony Win the High Definition Format War? The PS3 is the Answer

Recent tech headlines have said that Warner Brothers Studios has committed exclusively to Blue-ray high definition DVD format. That simple statement have many in the industry claiming that Sony and Blue-ray have won. While they might have won a battle, they certainly haven’t won the war. Many of us are still sitting on the fence waiting for a clear winning, and Sony could be that winner if they would only take one drastic step: drop the price on the Playstation 3 below $200.

They used to be king of the gaming console hill

I know it’s a stretch, but entertain the idea for a moment. Sony is taking a beating in the gaming console arena by Nintendo and Microsoft. Sony owned this market at one time, and were thought by many to be invincible. Well, the playing field has changed and Sony is getting “schooled” in the land where they were once king.

A Blue-ray player in ever house

So what does selling the PS3 below $200 have to do with Blue-ray winning the high def format war? Simple, Sony needs to take a Bill Gates approach and aim for putting a Blue-ray player in every house at whatever price necessary. But how does Sony accomplish this goal? It’ll be tough. The average DVD player goes for around $30, and while that isn’t a high definition player it’s so cheap that consumers won’t even consider anything higher regardless of resolution. Face it, $30 for a player is tough competition. Therefore if Sony wants a Blue-ray player in every house, they need to find different competition — Perhaps they could compete against the latest gaming consoles?

A PS3 at $199 and we could have a winner

Drop the price of the Playstation 3 to below $200 (I think $199 is actually the magic price point), then anyone who hasn’t purchased an XBox 360 or Wii buys the PS3. Heck! Even some of those people that have one of those machines buys a PS3 — it’s $199! Stores won’t be able to keep these things on the shelf. Once everyone has a PS3, they also have a Blue-ray player. If you’ve got a Blue-ray player, what kind of high definition DVD’s are you going to buy and rent? That’s right, Blue-ray.

Dropping the price to $199 is a bold move, and I doubt Sony will do it; however, if they did, they’d win the high definition DVD format war and put them right back into the battle for the gaming console.