Opinion: Has the PS3 turned a Corner?

 

PS3_41 Many in the media have been opining the failure of the PS3 since it's release.  With record-high hardware pricing (for a "MAJOR" system) and few games in the months after launch, it's not hard to understand why.  Many people, myself included, have always held that the incredible technology built into the system more than justified its cost, and would serve Sony well in the long term.  We knew from the beginning that the incredible cell processor, Blu-ray disc storage, true 1080p graphics potential, HDMI video and audio output, and a mandatory hard drive, made the PS3 the most amazing piece of home entertainment hardware ever created.  But the marketing machine at Microsoft went into full force as soon as the PS3 was released, decrying the high price (note that they then released a system or $479 that still didn't have hardware comparable to the PS3)   and lack of game releases (how many titles were available for the 360 at launch again?).  The media picked up the story and ran with it, also adding the third-party exclusives that Sony seemed to be losing.  Sales of the system slowed to an anemic level as games kept getting pushed back and rumors of a price cut ran rampant.  Things were not looking good for SCE.

Then, an amazing thing happened.  Sony, the company known most for its boisterous statements of superiority, and longstanding policy of corporate secrecy, had an amazing and immediate change of course.  Faced with a slow-selling $600 system, corporate leadership started acting with a newfound sense of humility.  More impressively, they put forth a big effort to "get the word out" about upcoming games and ideas they had for the new system.  They started an official blog, giving details of upcoming titles and interviews with corporate brass and game developers.  They started showing off "beta" material, most notably the innovative PlayStation Home social-networking concept due in final form this fall.  Suddenly, the media started to change, noting this newfound openness, and the PS3's role in leading the Blu-ray move format to a decisive victory against its HD DVD rival.

But sales were still below expectations, and it didn't appear they were likely to improve until this fall with the huge slate of titles due... and potentially a price drop.  Sony again shocked everyone by not waiting out the summer to "see what happened."  Starting this past Monday they officially dropped the price of the 60GB PS3 by $100 and announced a new $599 model with a larger hard drive and copy of Motorstorm.  Overnight sales jumped on Amazon.com 2800%, and the PS3 system became the number one selling video game item on all of Amazon.com.

In an incredible twist of fate, just as Sony was building momentum, Microsoft's good press came to a crashing halt.  In interviews with retailers, DailyTech found that store's estimated as many as 33% of XBox 360's were defective!  Asking the same about PS3's, word came back that it was at or under 1%.  The mass media picked this up as a consumer-interest story, and usually brought back up Microsoft's ever-lowering sales forecasts in the process.  Microsoft had to respond by offering to extend the XBox 360 warranty to 3 years (just for RROD errors though) -- a move that supposedly will cost the company $1.1 billion.  Perhaps due to this new expenditure, Microsoft has not dropped the price of their system in response to Sony's move.

And to top it all off, this week is the E3 conference--and by all accounts, Sony hit it out of the park!  They put an end to rumors of Metal Gear Solid 4 coming to the XBox 360 -- confirming it as a PS3 exclusive.  And in a surprise move, they also announced that Unreal Tournament 3 would be a timed exclusive for the PS3 -- and that Epic was reengineering the Unreal 3 engine to take advantage of the power of the PS3, so that other game developers can have a top-of-the-line development platform for the over 100 games that are already announced based on that engine.  In addition they announced the acquisition of NCSoft, a developer of MMOGs (massively multiplayer online games), all of whose future titles will be PS3 exclusives.  In total, they announced 200 Blu-ray disc games for the PS3 due out by the end of the year. 

Even better, they showed that they are listening to their customers!  The E3 press conference was chock full of games, games, and more games.  Demos, trailers, you name it.  Gone were the days of wild claims of system benchmarks that mean little if anything in the real world.  They have taken to heart the message that gamers don't care what you say about a game or system... they want you to show them.  And show them Sony did.  And the results have wowed every gaming publication out there.  They also showed how the input of consumers (beta-testers) for their upcoming Home release was being listened to, and improvements were being made constantly based on consumer suggestions.

With Blu-ray dominating its HD DVD rival, an amazing slate of upcoming games, and an early price drop, has the announcement of the death of the PS3 been premature?  It certainly appears that way.  Sales of the PSP went up 90% with a $30 price drop.  Sony expects much greater returns on the $100 PS3 price drop, and rightfully so.  Sony expects to ship 11 million consoles in 2007, and if they are able to make (and more importantly sell) that many, they will catch up to the XBox 360's year long headstart early next year.  And from there, who knows.  120 million PS2 owners are still due for an upgrade.  Unlike Microsoft's "burn it down and start fresh" strategy with their XBox line, Sony still actively supports their PS2 system, 7 years after its release.  New hit games are being released for the PS2 all the time.  What was the last major XBox 1 title to be released?  Anyone?  Anyone?  Bueller?  Remember that if you're thinking about buying a 360.  Do you really want to buy a new system every four years because Microsoft stops licensing games for their existing platform?  No?  Me either.

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Is the 60 GB PS3 a goner in the U.S.?

 

ps3_32 SCE Europe President Daivd Reeves said in an interview earlier that the real U.S. price of the PS3 would remain $599, because the 60GB PS3 was being discontinued in the U.S. as soon as existing stock was sold out.  This, of course, caused a minor uproar among PS3 fans who ave felt the price drop was one of the smartest things SCE America had done in recent memory.

Well, SCE America has officially denied the story, saying that Reeves misinterpreted their intentions with the price drop.  They say that the 60GB PS3 will continue to be available in the U.S., at the newly lowered pricepoint, for some time to come.  One thing Reeves mentioned that may be correct, however, is that Sony may be removing the backwards emulation chip from the U.S. PS3 models once the current sock sells through.  All PS3's sold outside of Japan and the U.S., have lacked this chip since launch, yet still maintain around 88% backwards compatibility with PS2 and PS1 games through software emulation.  It has always been expected that the chip would be removed from U.S. and Japan systems as soon as was practicable due to the increased cost of including the chip.

UPDATE: Actually, it now appears that there was some truth to the rumor after all.  According to the latest from SCEA the 60GB model will only be available "while supplies last," though they expect that to be for a number of months to come.  Personally, I think that a "new" $499 model will be available once that time is up... whether it's a remodeled 60GB without the emulation chip or an 80GB system without pack-in game remains to be seen.

Source

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Sony E3 Press-Conference Coverage

 

scea_ps Exciting news from Sony's E3 Press Conference:

  • PS3 price lowered to $499; new 80 GB coming at $599 -- Sales of PS3 have doubled since price cut took effect Monday
  • Home demo is looking good and the virtual world is expanding constantly as the beta continues
    • Extended connectivity options are being added for cell phones and other devices
    • You can launch ANY game from within Home (single-player or multi-player) and then exit to home when done playing.
  • PlayStation Network now has over 2 million registered users
  • New version of the PSP coming in September!
      • 33% lighter and 19% slimmer than existing model
      • Faster game load times
      • Longer battery life
      • Video output to connect to television!
      • Available in piano black (base pack $169), silver (media edition $199), and Star Wars edition (white $199)
  • 80 first party PS3 games currently in development -- New announcements and demos:
      • Echochrome -- a black-and-white puzzle game from Sony Japan
      • WipeOut HD -- a 1080p update to the PS1 classic
      • Pain -- a "Jackass"-like game where you inflict pain onto your character by making him do stupid stunts
      • WarHawk -- some new footage shown
      • SOCOM -- apparently runs entirely off PS3 hard drive -- will be available on disc and for download
      • SingStar -- the karaoke game that seems a little like American Idol -- game will ship on disc, but additional songs will be available from PlayStation Store
      • NCSoft has been purchased by Sony and all future games will be PS exclusive
  • Over 200 Blu-ray games due out this year for the PS3
      • Ubisoft's Haze will be a timed exclusive for the PS3.  No other version will be released this year.
      • Epic's Unreal Tournament 3 has been confirmed as a timed exclusive for the PS3.  No other console version will be released this year:
        • Sony has entered into a major deal with Epic to extensively optimize the Unreal 3 engine for the PS3 to provide developers with an excellent develop platform to build on
        • Over 100 games based on the Unreal 3 Engine are currently in development
        • Mods for the PC version can be ported to the PS3 version of the game!
      • Metal Gear Solid 4 confirmed as a PS3 exclusive -- Available Spring 2008 -- will be final MGS game
      • Ratchet and Clank Future: Tools of Destruction -- new demo -- PS3 exclusive
      • Heavenly Sword -- new demo -- PS3 exclusive
      • NBA 08 -- first sports game at 1080p 60fps
      • Little Big Planet -- new demo -- PS3 exclusive
      • Uncharted: Drake's Fortune -- due this year -- PS3 exclusive
      • Infamous -- choose to be either hero or villain -- due 2008
      • Gran Turismo 5: Prologue -- first trailer -- PS3 exclusive
      • Killzone 2 -- trailer shown -- PS3 exclusive
      • Other games shown:
        • Assassin's creed
        • Call of Duty 4: Modern Warfare
        • Resident Evil 5
        • Burnout: Paradise
        • Kane and Lynch: Dead Men
        • Harry Potter and the Order of the Phoenix
        • The Simpsons Game
        • Guitar Hero 3
        • NFL 08
        • Rock Band
        • Medal of Honor: Airborne

A lot of exciting announcements in there!  For a play-by-play of the press conference check out Eurogamer's coverage or watch the video over at Gamespot.

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Reduced Price on PS3 Sends Sales to #1 Spot on Amazon!

 

Sales of Sony's PS3 videogame system jumped to become the number 1 item on online retailer Amazon.com's videogame website today after the price dropped $100  to $499. 

N4G reports sales are up 2800%!

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It's Official: 60GB PS3 Now $499!

 

PS3-2 The rumors had it right!  As of today, the price for the 60GB PS3 has officially dropped $100 to $499.  The 20GB model should officially be dead and buried now, with the improved 60GB model taking its place in the price chain.  Hopefully, this will be the shot in the arm the PS3 needs to jumpstart the currently sluggish sales.

In addition, at the $599 price point, Sony will be releasing an 80GB PS3 model that also includes a copy of the game Motorstorm.  The new model is expected to be available in U.S. stores this August.

This could mark the start of the PS3 revolution.  The big question that remains is how Microsoft will respond to the new lower pricing.  Comparing the new PS3 pricing to the closest XBox 360 competitor shows which system really should be called overpriced.

 

To get a similar PS3 and XBox 360 you would need:

 

PS3 60GB $499 XBox 360 Elite w/HDMI $479
HDMI Cable $49 HDMI Cable $0
Blu-ray Drive $0 HD DVD Drive $199
Wireless Adapter $0 Wireless Adapter $99
1 Year Online Gameplay $0 1 Year Online Gameplay $49
PS3 - Total $548 XBox 360 - Total $826

So, to get a roughly equivalent experience between a PS3 and an XBox 360 you would need to spend an extra $278 on the XBox system!  And you'd still be stuck with HD DVD instead of Blu-ray!  Also, of course, the PS3 includes free online gameplay for life, while Microsoft will charge you $50 for each extra year for the "privilege."

Microsoft just had to extend the warranty on their machines to 3 years due to reports of a 25-33% defect rate.  The move reportedly will cost the company $1.1 billion, so their ability to drop the price right now may be limited.

PS3 Price Drop Source

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Official PS3 Price Cut Next Week?

 

ps3_33 I usually don't post rumors, but this one has gained a life of it's own.  According to leaked ads for Best Buy (Canada) and Circuit City (U.S.), the PS3 is expected to get a nice price cut to be announced at E3.  Sony is officially denying a price cut is in the works, but with two of the largest retailers advertising the lower prices, it's hard to imagine this isn't true.

In the U.S., the 60 GB PS3 is expected to take a $100 price drop, from $599 to $499.  In Canada, the 60 GB PS is expected to take a $150 CAD price drop, from $699 to $549 CAD.

This begs the question of what Microsoft will do with the price of their own XBox 360 gaming system.  Although the system is a full year older than the PS3, it still has not been given a price cut.  One was expected once Sony lowered the PS3's price, however incredibly high defect rates  on the XBox 360 console (estimated by retailers to be as high as 33%), led Microsoft to extend the warranty for RROD (Red Ring of Death) general hardware failures to 3 years earlier this week.  Microsoft had long said the failure rate of the console was within industry norms, but users have always reported otherwise.  The warranty extension will reportedly will cost Microsoft $1.1 billion, making the prospects of a price drop for the system in the near future much more costly to pursue.

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Blu-ray vs. HD DVD: Nielson VideoScan Comparison for Week Ending 7/1/07

 

Every week Home Media Magazine reports the latest Nielson VideoScan numbers for the Blu-ray vs. HD DVD battle.  They include three figures: Weekly, Year-to-date, and Since Inception.  Weekly numbers examine discs sold at retail over the course of just the current week, the YTD numbers look at sales from the first week ending in 2007 to the present, and the since inception numbers show the relative performance of Blu-ray and HD DVD discs since the formats' respective births.

Nielson VideoScan Data for Week Ending 7/1/07

hd 7-01

Source: Nielson VideoScan via http://www.homemediamagazine.com/

Weekly sales: Blu-ray leads HD DVD 65% to 35%, 100:53.8, or 1.85:1

YTD sales: Blu-ray leads HD DVD 67% to 33%, 100:49.3, or 2.03:1

Since Inception sales: Blu-ray leads HD DVD 60% to 40%, 100:66.7, or 1.5:

 

Nielson VideoScan Data for Week Ending 6/24/07

hd 6-24

Source: Nielson VideoScan via http://www.homemediamagazine.com/

Weekly sales: Blu-ray leads HD DVD 70% to 30%, 100:42.9, or 2.33:1

YTD sales: Blu-ray leads HD DVD 67% to 33%, 100:49.3, or 2.03:1

Since Inception sales: Blu-ray leads HD DVD 59% to 41%, 100:69.5, or 1.43:1

The data isn't very surprising, with Blu-ray continuing to make up 65-70% of HD sales.  The since inception number finally budged, so Blu-ray is officially outselling HD DVD over 2:1 this year, and 1.5:1 since inception.  We're about to enter a slow release period for releases in the next couple of weeks, so we'll see if those margins hold.

 

Nielson VideoScan Top 10 for Week Ending 6/24/07

top 10 6-24 (2)

Source: Nielson VideoScan via http://www.homemediamagazine.com/

Another great week, with 8 of the Top 10 high definition titles being Blu-ray discs.  How Casino Royale manages to continue selling so many copies is something of a mystery.  There must still be a lot of PS3 users just coming on board to Blu-ray movie playback.

 

Nielson VideoScan Top 10 Year-to-Date

top 10 6-24

This is the first time since March I've seen a combined list of the top sellers for both formats for the year so far.  Again, Blu-ray takes 8 of the 10 spots, with Casino Royale leading the pack as expected.  Also, notice that Universal, HD DVDs lone exclusive "major," is completely MIA from the list.  That should say something either about the quality of the movies the studio is putting out.. or about the format the studio releases on.  I'll let you decide which.

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Politics: 2nd Quarter Fundraising Totals

 

DollarSign Happy fourth of July everyone.  In celebration of American Independence Day it seemed fitting to report on that all American pastime: Campaign Fundraising!  The early numbers are in for the second-quarter fundraising results for the 2008 Presidential contenders.  So, how did the candidates do?

Democrats:

Barack Obama $32.5 million ($31 million in primary donations)
Hillary Clinton $28.5 million ($21 million in primary donations)
John Edwards $9 million
Bill Richardson $7 million
Christopher Dodd $3.25 million

Obviously, the big surprise (for many) is that Obama surged ahead of Clinton in fundraising efforts for the quarter, setting a new record for second-quarter primary funds raised.  Clinton, meanwhile, raised a substantial amount, though much of it cannot be used until the general election.  Obama also raised more in the first quarter, though Clinton's "war chest" has been larger.

Republicans:

Rudy Giuliani $17 million ($15 million in primary donations)
Mitt Romney $14 million (all in primary donations)
John McCain $11 million

Obviously the big news on the Republican side is that John McCain's campaign is struggling -- or crashing as the case may be.  Having only $2 million in cash-on-hand the McCain campaign has had to lay off or cut the salaries of much of the staff.

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The Truth About Studio Support

 

All too often I hear from HD DVD supporters that studio support doesn't matter.  When that argument falls apart, they usually claim that the studios that do release HD DVDs put out pretty much every movie they (and presumably other consumers) want to see. 

Well, there's an easy way to see what studios produce films people want to see and that's to just look at their percentage of industry revenues.  As it turns out, between the 6 major studios and 2 mini-majors, those studios make up 97.7% of all box office and DVD revenues.  From that, the four studios who are Blu-ray exclusive made up 58.4% of all revenue, neutral studios made up another 25.9% of all revenue, and HD DVD exclusive studios made up 13.4% of all revenue.

When you add the neutral studios in to both sides' totals, Blu-ray studios come out with 84.3% of all revenue, while HD DVD comes out with 39.3% of all revenue.  It's hard to believe that the four Blu-ray exclusive studios, who have a 58.4% marketshare, don't release any films that consumers want to see.  If that were so, then who's contributing to those revenues?

2007 studio breakdown

(Note: Click on the image to view larger version, and feel free to print it out to show to your "fence-sitting" friends).

Edit:  I just added the YTD 2007 data as well.  For 2007, Blu-ray exclusive studios have a 51.4% revenue share, with neutral studios having a 33.1% marketshare, and HD DVD exclusive studios have a meager 8.5% markeshare. In terms of disc availability (by adding neutral studios to both formats) 84.5% of the revenue was by Blu-ray supporting studios, and 41.6% of the revenue was by HD DVD supporting studios.  This will be incredibly important come this fall when these blockbuster releases are released on video.

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Optical Disc History: How We Got Here

 

dvd5 Since last week marked the one year anniversary of commercial Blu-ray in the U.S., I thought it was time for a trip down memory lane to look back on the history of optical discs.  Blu-ray didn't just appear out of the blue (or Blu).  It took nearly 50 years since the earliest trials to get where we are today.

First Optical Systems - 1958-1969

Credit for the first optical disc system is usually given to David Paul Greg, who invented a laser-based transparent disc system way back in 1958.  He and others improved the technology throughout the 1960's, but it was Philips, who, in 1969, successfully created a laser-based reflective disc that really got the ball rolling.  At the time, the idea of "home video" was still a foreign concept, but one that had many people excited.  Only a few mostly-professional tape-based systems were then in existence, but most manufacturers felt that people didn't want to record television.  They simply wanted to watch movies at home.  Thus, a number of manufacturers were hard at work on various video disc ideas, which seemed easier to implement than video tape systems.

DiscoVision / VLP / LaserVision (Round 1) - 1978-1984

It took a partnership with MCA (Music Corporation of America), who they learned was working on a similar system, and nearly another decade before Philips was ready to launch the first VLP (Video Long Player), or as MCA preferred to call it DiscoVision Player.  The system launched in Atlanta, GA, on December 12, 1978, with only 50 players released.  All players were bought immediately -- many by employees before the store even opened -- and it looked like Philips had another hit on their hands.  Following on their recent success of the audio cassette and the VCR (Philip's original name for one of the earliest videotape systems), Philips seemed to be the company to beat.  Though Philips/MCA deserve the credit for the first systems, Pioneer and Sony quickly came on board to expand the market.

Despite the initial success, the relationship between Philips and MCA went south.  Disc manufacturing was hugely problematic, with over 50% of the early discs being defective.  In addition, the delays in coming up with a standard had given videotape time to launch and Sony's Betamax, JVC's VHS, and Philips' Video2000 systems were capable of playing and recording, and were available at a lower price.  The original manufacturer's, however, were undeterred.  A "relaunch" of sorts happened in 1981/1982, led by Pioneer, who relabeled their players as LaserVision players, and worked to expand the players into the karaoke market. 

They were fighting an uphill battle, as rival disc formats were being introduced by competitors -- most notably RCA's CED "Select-a-vision" in the U.S., and JVC's VHD (Video High Density) in Japan -- but none used the advanced (for the time) laser technology of the Philips/MCA format.

Contrary to what many people think, these original discs were NOT digital.  The audio and video data is stored in an analog format, just like all other audio and video formats of the time.  This, in part, is why the discs were a massive 12" in diameter.

Compact Disc (CD) - 1982-Present

Responding to a call by the RIAA -- in probably the only decent thing they've ever done for consumers -- for a new PCM-based (pulse code modulation, ie. digital) music disc format, Sony and Philips teamed up in 1979 to create a new format to meet the demand.  Knowing that other companies such as JVC were hard at work on a format as well, they proceeded quickly, using the Philips' VLP/DiscoVision system as a starting point. 

Since PCM digital audio was still such a new idea, they soon found that converting the digital audio to analog video tape was the easiest way to get to get digital audio data from the studio to the CD manufacturing plant.  Using this system, they found that they could get 14 or 16-bit digital audio at a 44.1 KHz sampling rate.  Going with 16-bit meant less room on the tape for error correction, but, Sony believed, would produce a better quality CDs in the long run.  By using binary PCM-audio data, it was possible to shrink the massive 12" video discs down to merely 5" for the audio discs, and still maintain 74 minutes of playing time.  It only took two years from conception to the time when the first CD player was released in Japan in late 1982.  The format became a rapid success, eventually pretty much ending the phonograph record and audio tape markets.

CD-ROM - 1985-Present

Building on the success of the audio CD standard, Sony and Philips released the Yellowbook standard for writing computer data onto CDs in 1985.  Designed in an era when PC hard drives only held a few hundred megabytes of data at most, the CD-ROM promised huge storage potential of 640 MB on a small (and cheap) 5" disc.  Although it took awhile to catch on, as computer applications grew in size, it became more and more common for them be available on CD-ROM, either instead of, or in addition to, versions released on many floppy disks.  In 1988, the expanded the usefulness even further, creating CD-R and CD-RW discs that could be written to in addition to read from.  Sony and Philips also created an interactive CD-ROM spec commonly referred to as CD-i (first released in 1991), which in many ways was a precursor to the interactive features of DVD discs.  Though Philips briefly tried to market CD-i applications to home users, the primary use was in commercial applications.

Due to the increased storage capacity provided by CD-ROM, a number of video game systems came out that utilized the format.  Among these were TubroGraffix 16/PC Engine CD (1988), FMTowns Marty (1991), Sega CD (1991), Amiga CDTV (1991), 3DO (1993), Amiga CD32 (1993), Atari Jaguar CD (1994), Sega Saturn (1994), Sony Playstation (1994), NEC PC-FX (1994), NeoGeo CD (1994), and the Apple/Bandai Pippin (1995).  The final system to be released with a CD-based drive was the Sega DreamCast (1998), which made use of special dual-layer discs they called GD-ROM.  Sony similarly tried to market a Double-density CD-ROM (DDCD) format for PCs in 2002, though only one burner was ever released.

LaserDisc (LD -- LaserVision Round 2) - 1985-2002

Given the huge success of the audio CD, and the still struggling status of the laser video players, a decision was made to try to use the "CD effect" to sell more video players.  The combo player was born.  First launched in 1985 by Pioneer, combo-players could play both LaserVision videodiscs and Compact Discs in the same player.  New video discs were created that added CD-like digital audio.  The format, using the new specifications, became known as LaserDisc, and went on to experience a lot of success in Japan, and achieve a long-term niche status in the U.S.  Despite the niche status of the format in the U.S., over 17,000 LaserDisc titles were released in the U.S. during the format's lifespan.

In 1994, the LaserDisc system was improved immensely in Japan with release of high definition MUSE LaserDisc players which played MPEG-2 encoded high definition video, and the release of the first Dolby Digital AC-3 players in America.  DTS discs were also released that included DTS soundtracks encoded in place of the standard PCM audio tracks.  Combined with widescreen movie releases and the higher vidoe resolution of LaserDisc compared to VHS tapes, these advancements helped keep LaserDisc the preferred format for videofiles, until DVD came along.

After the release of DVDs, sales of LaserDiscs plummeted, and the final LaserDisc movies were released in the U.S. in October, 2000.  Discs and players continued to be sold in Japan for awhile, with the final MUSE laserdisc player model going out of production in May, 2002.  Pioneer USA continued to offer its final DVD/Laserdisc combo player for some time after that, though officially support for laserdisc is dead.

As with the CD format, the LD-format also had a ROM variant used in PC applications, though the use of the format was much more limited.  Usually, the disc was only used for video, pictures, or audio, however Pioneer did release the LaserActive, a video game system, in 1993, that used LaserDiscs as the storage medium for games.

Magneto-Optical (MO) Drives -- 1990-Present

Although CD-ROM had brought optical media to the PC, the recordable variations had one major flaw: data had to be written a disc, track, or session at a time.  And deleting data was really only possible by rerecording the whole disc!  Canon, in around 1987, developed a drive that fixed that problem.  By using a special material that reacts to both laser light and electromagnetic currents, Magneto-optical drives can have specific information "erased" by a laser, and then rewritten by an electromagnet.  Though the format allowed for much more flexibility than CD recorders, the multiple passes required to erase and then "write" data made the drives very slow.  The drives were first used in the NeXT computer systems released in 1990 and continue to this day, though in more limited quantities than originally hoped.

MiniDisc (MD) -- 1992-Present

In 1992, Sony released the first MiniDisc player, a format that made use of Magneto-optical technology for audio recording and playback.  The format proved a very popular replacement for cassettes in Japan, but never caught on with anyone aside from musicians in the rest of the world.  Part of the problem was that the ATRAC compression system employed by minidisc changed frequently in the early days of the format, and recordings from one unit often sounded poor on a unit which was designed with different hardware.

Over the years, the minidisc format was updated for use as a data medium, and later as a type of storage for PC-based audio files.  Most recently, in 2004, Sony release Hi-MD players and recorders (in Asia) which could record and playback a variety of audio formats off of 1 GB discs.  The Hi-MD format was designed to be used with a PC as well, and could store photos and other data on the discs for transfer between PCs.

DVD -- (1996-Present)

What started in 1991 as an attempt by Pioneer to create a new generation of LaserDisc that could store more than 2 hours of video on one side, ended with with a format that would change home movie-watching forever.  By 1994, Pioneer had a fairly advanced prototype but was still a ways off from a final format, and Hollywood wanted a new format in place soon.  They teamed up with Toshiba (and eventually a number of other companies) to create the dual-layered SD format.  At the same time, Sony and Philips were marketing the MMCD, a new video disc system viewed as an extension of the CD format.  Fortunately, Lou Gerstner, then President of IBM, called the parties together and got them to agree on a standard spec, based largely on the SD format's structure.  In November, 1996, the DVD video format was officially launched, and the rest, as they say, is history.

DVD quickly replaced LaserDisc in the videophile market, and as player and movie prices dropped, eventually replaced the VHS tape as the de facto standard video format for home use.  Although various reports initially stated that DVD stood either for Digital Video Disc or Digital Versatile Disc, due perhaps to the confusion, the position of the DVD Forum is that DVD isn't an acronym for anything.  DVD-ROM drives for PCs were available at the very beginning of the format, with lower capacity DVD-R and DVD-RAM drives available in 1997.  In 2000, the DVD-R/RW/RAM specs were enhanced and full 4.7GB capacity discs were made available.  The following year, the DVD+RW alliance, led by Philips and Sony released the final spec for DVD+RW, and later DVD+R discs.  These competing and incompatible standards threatened to create a mini "format war," however drives that could read and write both types of media ended up becoming the standard.

Like CD-ROM before it, DVD-ROM became the defacto standard for new video game systems after it's release.  Systems that use DVD-ROM drives include the Sony Playstation 2 (2000), Microsoft XBox (2001), Microsoft XBox 360 (2005), and the Nintendo Wii (2006).  All those systems but the Wii also playback DVD video discs.  The Nintendo GameCube also used special mini-DVDs for its games, while the Sony PSP used cartridge-based optical discs similar in structure to DVD discs.

Super Audio CD (SA-CD) and DVD-Audio (DVD-A) -- (1999-Present)

With the DVD Forum's successful launch of DVD as a video and data medium, many within the organization turned their attention toward high-resolution digital audio.  The goal was to leverage the existing video capabilities of DVD, while adding very high-resolution PCM audio.  Sony and Philips, the creators of the audio CD, and working at the same time on their own extension of the CD.

SA-CD was released first, at the end of 1999, with the first player, Sony's SCD-1, cost $5,000!  Moreover, that first player, and many dedicated players since, have only played 2-channel SA-CD recordings.  SA-CD discs are actually DVD discs, though they are not designed to play in standard DVD players.  They contain no video information, but only extremely high resolution 1-bit 2.8224MHz audio in either a 2-channel or 5.1-channel configuration.  The system uses a DSD (Direct Stream Digital) format that differs substantially from the standard PCM audio found on computers and other optical media.  Early discs were largely SA-CD-only discs, though most recent discs are "hybrids" which contain both a stereo and/or multichannel SA-CD layer and a standard CD layer, to allow playback compatibility with standard CD players.

DVD-Audio was released shortly thereafter, with goal of expanding the DVD spec into high resolution audio.  The format differs from SA-CD in that the audio is recorded in PCM format (or compressed MLP PCM) at a wide variety of bitdepths and sampling rates.  To maintain compatibility with DVD video players, most DVD-Audio discs contain a Dolby Digital or DTS soundtrack and a video track or menu as well.  Like SA-CDs "hybrid" format, a format called "DualDisc" allows for a CD on one side of a disc, with a DVD-Video or DVD-Audio layer on the reverse side.

Although both formats use the same disc structure, they strive toward different goals.  That didn't stop people from declaring a "format war" between the formats, and sales for both have suffered perhaps due to that perception.  Despite lackluster sales, many titles have been released.  SA-CD, in particular, has had over 4,500 titles released.  As prices for D/A converters and other components have dropped, it has become very common for DVD players to feature support for one or both high resolution audio formats.  Though many people therefore have players capable of playing back the discs, disc sales have not increased as a result.

Ultra Density Optical (UDO) and Professional Disc for Data (PDD) -- (2003-present)

Starting in 2000, Sony announced their work on how to use blue-violet lasers in optical drives to greatly increase the amount of data the discs could hold.

The first of these products to reach the market was the UDO (Ultra Density Optical) format, in 2003, which stores up to 30GB on a special MO-like disc, designed to be read by a blue-laser.  Though the research and development of this format led to many of the technologies that would make their way into the Blu-ray format, Sony has largely given over the marketing and development of the format to other storage companies such as Plasmon.

Later the same year, Sony introduced the Professional Disc for Data (PDD), a cartridge-enclosed disc designed to be used in high-capacity/high-reliability data applications as well as video applications.  The original "Blu-ray" recorders sold in Japan in 2004-2005 were actually recording high-definition and standard-definition video onto these discs (though they were at that time referred to as BD-RE 1.0 discs).  Since then, the discs have been adopted as the recording format for Sony's professional XDCAM camcorders, and have been marketed into the PC market.

Blu-ray (BD) and HD DVD -- (2006-Present)

Welcome to the present!  It's been a long road to get here, and the story of just how the two most recent formats came to be, could fill a few books on its own.  That said, here's the highly compressed version.

Though commercial HD DVD discs and players launched first, Sony and Panasonic have had out "Blu-ray" recorders since 2003.  Initially, Blu-ray was to use a cartridge-based disc in order to prevent scratches.  Those original discs are what now are called PDD discs.  TDK developed a very hard coating that could protect the extremely high density Blu-ray optical media, and the BDA (Blu-ray Disc Association) companies voted quickly to adopt it, allowing non-cartridge based discs to become the standard. 

While the BDA companies were working on their blue laser format, Toshiba and a few allies (most notably Warner Brothers) were developing their own HD optical disc format based around the existing disc structure of DVDs.  The idea was to put 720p HD video on regular DVD discs using advanced video and audio codecs to achieve better compression.  This idea had a few strong selling points: for one, it would be very cheap to implement, as only new decoding hardware would be required for players, and all existing DVD production lines could produce the discs.  Using the existing DVD discs, Toshiba would also be able to easily extend the value of their existing patents for that disc structure.

Seeing Blu-ray companies coming closer and closer to an all-new format that they would have no part of the parent pool for, Toshiba and others started to rethink their position.  Fearing that their HD-lite format might be viewed as a stop-gap solution on the road to the higher-resolution Blu-ray format, Toshiba decided that they too needed a 1080p format if they were going to compete.  Trailing far behind Blu-ray in terms of development, Toshiba and NEC worked very quickly to put together a new disc format.  The final disc format, originally called AOD (Advanced Optical Disc) that increased the storage capacity of HD DVD discs to about 60% of that of the Blu-ray format.  In November, 2003, Toshiba managed to get the HD DVD format selected as the high definition successor to the DVD by the DVD Forum.  They did this by allowing in many new voting members to offset the BDA companies who certainly weren't voting for the proposal.  Toshiba still had a huge problem as it looked as though Blu-ray was much further along in development and would be able to launch first.  During negotiations between the two groups, however, Microsoft became disillusioned with a number of the BDA decisions, and decided to officially support HD DVD.  Very quickly, Microsoft was able to use their software and hardware knowledge to help Toshiba create a fully-formed playback system in very short order, using their HDi development language for the menus and special features, and often their VC-1 video codec for the video stream. 

By CES 2006, both formats had pretty much solidified their offerings and it was clear that a war was about to emerge.  Although HD DVD had lost the exclusive support of both Warner Brothers and Paramount, with Microsoft's help they were able to include advanced features such as PIP commentary that Blu-ray would not be able to roll out in its first players.

On April 18, 2006, Toshiba released the first two HD DVD players in America (the first player was released in Japan a few weeks earlier).  After several additional delays, the competing Blu-ray format was launched in the U.S. on June 20.  Initial reports had Blu-ray at a disadvantage, due to a combination of lackluster MPEG-2 transfers and a firmware issues with the first Samsung Blu-ray player.  For many months, HD DVD consistently led in player and disc sales.  Then, on November 17, 2006, Sony released the PS3 videogame system which featured Blu-ray movie playback.  The sales data changed overnight.  Almost immediately, Blu-ray sales overtook HD DVD sales.  Within the month following the release of the PS3, Sony, Pioneer, and Panasonic all released standalone Blu-ray players that featured much better picture quality than the Samsung player with it's original firmware.  So far, in 2007, Blu-ray has enjoyed a just over 2:1 sales advantage over HD DVD, a trend that seems likely to continue to grow throughout the rest of the year.

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