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Sony joins DVD war
08/12/2006 17:17 - (SA)
Tokyo - Less than a month after the troubled launch of its PlayStation 3, Sony rolled out its new high definition DVD recorder in Japan on Friday as it struggles to restore its tarnished reputation.
In a replay of the VHS-Betamax battle between two types of video cassette tapes in the late 1970s, two different DVD formats are hitting the market, offering cinematic quality images and interactive entertainment.
Sony's Blu-ray machine went on sale here on Friday in time for the crucial year-end holiday shopping season with a price tag of about ¥300 000 (R18 400.38) for the 500 gigabyte hard disk drive version.
"We heard from electronics appliance stores that customers showed great interest in our new products during our demonstration campaign," said Sony spokesperson Daichi Yamafuji.
A clerk at major electronics retailer Bic Camera said the store had "received a great deal of customer interest in the product."
But whether the company can translate such interest into significant sales remains unclear, analysts said.
With such a high price putting it out of the reach of most households and Sony only set to produce 10 000 units per month, sales of the new machine will have a limited impact on Sony's overall performance, they added.
Success is vital
"The weight of the new DVD recorder in Sony's overall performance is very low compared to the PS3 game console as the number of sales is very small," said Kazuharu Miura, analyst at Daiwa Institute of Research.
Even so, the Blu-ray player is at the root of the electronic's giant's problems with the PlayStation 3, which Sony was forced to delay because of shortages of parts for the DVD component which is installed in every PS3.
Sony has poured hundreds of millions of dollars into PlayStation 3 and its success is considered vital to the iconic company's future following a series of setbacks, including recalls of millions of faulty computer batteries.
Japanese electronics makers have also invested heavily in the future of DVDs and are fighting a fierce campaign to try to convince consumers that their product should become the dominant format.
Matsushita Electric Industrial, the Japanese maker of the Panasonic brand which is partnering with Sony, has already launched its version of the Blu-ray machine, while Toshiba has rolled out its rival format, HD DVD.
A successful launch of Blu-ray could help restore some lustre to Sony's reputation for innovation after the company that brought the world the Walkman fell behind other companies like Apple with its iPod hit music player.
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