Xbox and PlayStation have been in competition for countless of years. One of the biggest differences between the Xbox 360 and the PlayStation 3 was the disc drive; PlayStation 3 having Blu-ray and Xbox 360 using HD DVD's. It's been easily noticed that Blu-Ray beats the competition, and it's set for the next generation consoles to both support Blu-Ray. Although, a little cost will have to be settled.
Yesterday on the Pach Attack! analyst of Wedbush Securities, Michael Pachter estimated how much Sony would be earning from the Blu-Ray license.
Michael Pachter said:Blu-Ray drives cost probably around 25 bucks... and in the 25 bucks, there's probably a royalty about of two or three bucks, so you are talking about two to three dollars of royalty times 10 to 15 million consoles a year, or 75 million a lifetime (if it performs to sell just as much as the Xbox 360).
He ends up with saying that Sony will be benefiting an estimation of $150- $200 million. It might not make a huge difference to Sony, $200 million dollars isn't that much money compared to their annual earning, but it is interesting to see that Microsoft will have to pay money to their main competitor for every console they sell on the market! On the other hand, it has to be noted that Microsoft had no other choice. If they wanted the Xbox One to have blu-ray, this was the only solution.
Do you guys think it's ridiculous that they have to pay to Sony two/three dollars on every console they sell? Or do you think Xbox One is doing the right thing and trying to not be cheap by staying with DVDs? Do you think this can hold Microsoft on doing a price drop later on? Opinions are gladly welcomed.