Blu-ray has been declared the winner of the high definition video disc format wars after Warner jumped ship to become exclusively Blu-ray. The war is not over, but since many people are declaring it over (including me), it only puts more nails in HD-DVD’s coffin. When you go to the store or ask your technically inclined friends, they will steer you in Blu-ray’s direction because HD-DVD can is perceived as inferior since there are less studios supporting it and the premium cable effect. When makers of some cables raised their prices, they sold more cables, because their product was perceived to be better since it was more expensive. Since the United States has not switched to digital versus over the air broadcasting, many homes including mine have yet to purchase a HDTV, which is needed to enjoy high definition video. From an investor’s standpoint, the switch over to digital broadcasting represents a good opportunity.
Sony (SNE) has much to gain with the success of Blu-ray since they are the ones who created the format plus provide the content and the hardware. The Sony Bravia LCD line is doing exceptionally well, enough to even dampen losses from the Playstation 3’s development costs. Sony’s Playstation Portable actually sells better than its state-of-the-art Playstation 3. The Playstation 3 is also seeing a pickup in sales after price cuts, which will only get better when Metal Gear 4 and other platform exclusive games come out.