Video Asylum

The problem is can they maintain it ?

192.35.35.35

oscar

In Reply to: RE: Economics principles say, price matters posted by DavidLD on November 07, 2007 at 05:01:55

Wal-mart claims to have taken a hit on the A2s with an "admitted" purchase price from Toshiba at $185 (the price in States with anti-dumping laws) though I'm sure there were other "monetary considerations".

I'm not sure Toshiba/Wal-Mart can make a profit at even the $198 price point for the A2s/A3s but we shall see.

Follow Ups:

Of course the question is... - DavidLD 13:34:17 11/07/07 (4)
Are the printer cartridges profitable enough to sell the printer at a loss?

Are the HD disks profitable enough for Wal Mart to sell the player at a loss? In selling each $99 player, Wal Mart has created a potentially long stream of profits from the sale of HD formatted disks, disks that would not have sold at all otherwise.

If the disks are to sell people have to have a player.

If Wal Mart sells groceries at a loss, it drags people into stores past more profitable merchandise with a higher margin. Sneaky people, those retailers.

D
- RE: Of course the question is... - Jack G 05:09:49 11/08/07 (0)
  If you assume for the moment just for giggles, that there will be only one format, and it will be adopted by the masses, then the big bucks will be in the patents and licensing fees. Potentially billions over the years.
  Jack
- Groceries are where they make money.... - oscar 16:12:13 11/07/07 (2)
  Cheaper to shop at "mainstream" grocery stores...
  
  Also, Wal-Mart, other retailers, and the studios want to maximize profits on software sales. Which means they need to keep the prices up wrt to DVD. Fine balancing act that. If Wal-Mart drops the HD media prices too much, the studios won't want to "play". OTOH, if they keep the prices high, it turns the J6P crowd away from HD media; DVD upsamplers would remain highly attractive. At the moment HD media prices are too high.
  - CD was 2x the cost of LP yet it sold brilliantly - 4season 19:37:36 11/07/07 (1)
    Folks will pay a premium if they feel they're getting their money's worth--plus a little extra. And it's a very affordable little luxury too: Just a few extra bucks here and there.
    - Upsampled DVD will be "good enough" for a lot of people... nt - oscar 05:14:59 11/08/07 (0)
      .

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