This is the type of thinking that screwed Sony.
The sales just aren't there. Their product isn't viewed as a better value than rival physical media, nor is it viewed as the most cost-effective form of HD media. DVDs are still pretty good, HDTVs are just barely out of the early adopter phase, and the next wave has already struck. They blew the market.
I mean it was going to happen with or without the format war. Whoever won was going to need to render their own format obsolete to stay ahead of the curve. This is akin the old Betamax-VHS format war, except imagine duking it out knowing that TiVo would debut a year later.
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