SNE and Blu-Ray

[BentleyVTech]

So from what I've read, the next-gen format war is finally over, and the blu-ray disc has prevailed.

In my eyes, I think that should mean that either Sony's stock should increase OR Microsoft/Toshiba's stock should decrease..because HD-DVD lost. But in the recently weeks, Sonys stock has hit nearly 52 week lows...

I would think that winning the next generation format war...so that means alllllll "hi-def DVD's" (which are getting more popular) in the future will be made on Sony's blu-ray disc, and will have to be played on a blu-ray player...BOTH I think would be huge for Sony.

Now if Sony's stock doesnt increase...maybe they forecasted the win and there stock price remains constant. But then Microsoft/Toshiba CERTAINLY didnt forecast a loss, so I would think it would be horrible news for them since they invested so much money and had high hopes on that format winning....

for some reason I know its going to be more complicated than that when you try to correlate the stock price to the format war.

[netwrangler]

So from what I've read, the next-gen format war is finally over, and the blu-ray disc has prevailed.

In my eyes, I think that should mean that either Sony's stock should increase OR Microsoft/Toshiba's stock should decrease..because HD-DVD lost. But in the recently weeks, Sonys stock has hit nearly 52 week lows...

I would think that winning the next generation format war...so that means alllllll "hi-def DVD's" (which are getting more popular) in the future will be made on Sony's blu-ray disc, and will have to be played on a blu-ray player...BOTH I think would be huge for Sony.

Now if Sony's stock doesnt increase...maybe they forecasted the win and there stock price remains constant. But then Microsoft/Toshiba CERTAINLY didnt forecast a loss, so I would think it would be horrible news for them since they invested so much money and had high hopes on that format winning....

for some reason I know its going to be more complicated than that when you try to correlate the stock price to the format war.Seems to me the play here is with the folks who stamp out blu-ray DVDs. There is a shortage of capacity. Got to be some growth.

Haven't done a search for these folks yet. Any suggestions as to which DVD stamping firms might benefit?

[freakscene]

. Any suggestions as to which DVD stamping firms might benefit?

Samsung, Verbatim (Hitachi), Maxell, Sonic but they all make HD DVD's too I think.

Sony's PS3 might be taking off on this news.

[Rynn]

Well, it certainly is good news for Sony. But it has cost them a lot. They had to pay Warner a lot to get their support, plus they've been losing money on every PS3 sold and are just now breaking even. And sales are still low.

So it'll probably be a few years before they really start making money from it. SNE might be a good investment if you have a very long-term outlook (like 3-5 years).

If PS3 does take off, it might help NVDA a bit, though I don't know how much they actually get from PS3 sales.

[BentleyVTech]

I'm a gamer and have a playstation 3. This year is huge for playstation 3 because they have 5-6 really really solid games coming out, which are going to attract a bunch of new buyers. From what I've read, PS3 sales haven't been slow in the past 4-5 months....theyve actually been selling more than they expected at this time. This news is big, because although there are other Blu-ray players out there...the playstation 3 is the most universal blu-ray player(and I've also read that it can play other video formats that most blu-ray players cant). Expect big ps3 sales this year, crushing Xbox360...while Wii continues to do well. I just dont know how much solid PS3 sales will affect such a large, diverse electronics company such as sony. I'm in long-term for sony

[wallstreetsedge]

i think SNE has run out of steam.. in fact im looking to buy puts tomorrow on 2 tech stocks... SNE and GRMN

hopefully i can see a small pop in the morning on GRMN which will give me a good buying opportunity on GRMN puts

[bahroor]

you guys remember the VHS and Betamax battle in the 80s? Sony didn't just pull out but they were certainly defeated... I think their marketshare was less than 10%.

I don't know which technology is better not do I care to find out.. Blu-Ray and Sony won the battle simply because they did a much better job marketing and advertising their product IMO.
Then they won key players (its like winning key states in a presidential election) such as the world's largest retailer (Wal-Mart), Netflix, Warner Bros, etc.

Bottom line is Sony wasn't going to lose another tech battle two decades later.. smart marketing wins every time.

[bahroor]

2716

above is Sony's 3 year/ weekly chart... lots of resistance in the high 50s, good support in the low 40's... you can trade the channel as long as it keeps its head above water and doesn't break the MA 200 (blue line).

[freakscene]

http://www.reuters.com/article/technologyNews/idUST28076020080313

ouch