consoles as do-it-all home entertainment centers."
http://www.mbc-thebridge.com - used with permission
Game Consoles Reshuffling HD Market
What's driving HD adoption these days? According to a study released earlier this week by market research firm IMS Research, it isn't HD set-tops and pay TV services. Instead, video game consoles, and specifically the Playstation 3 and Xbox 360, are changing the overall HD market in new and largely unexpected ways.
"The HD-DVD and Blu-ray Disc camps have both benefited greatly from the console market," said IMS analyst Paul Erickson. "The majority of the current blue-laser disc installed base is comprised of Playstation 3's and Xbox 360 HD-DVD add-on drives, and this trend is likely to continue until standalone player prices drop well below current levels."
So, instead of running out to buy stand-alone Blu-ray and HD-DVD players, users are turning more and more to their game consoles as do-it-all home entertainment centers.
And that's not all. The expansion of downloadable HD content has also benefited from console sales. For example, sales at Microsoft's Xbox Live Marketplace, which offers a variety of pay video content that can be played back via the console, has eclipsed several other more established online video stores in less than six months. Why? Because it is easier to have one machine that does it all.
"The battle ahead will be interesting, given not only the price differential and inherent differences in product strategy, but also the significant role each console plays in the format war between HD-DVD and Blu-ray Disc," Erickson said. "With their positioning as a single point of playback for disc-based, online, and in the case of the Xbox 360, networked media playback, these two products will change the role of consoles in the living room. Furthermore, this broader role is expected to diminish the already niche market for connected playback devices such as AppleTV and similar 'media extender' products."