The console war between Sony and Microsoft is not just about who can dominate the market but it represents the battle of 2 emerging innovative technologies; HD-DVD versus Blu Ray. Whoever wins will define the next high definition standard for us to experience. The stakes are in billions of dollars and many companies will either make or break from this war. Right now, Sony”s Blu Ray technology is leading this battle due to many big movie studios, player manufacturers, and disc manufacturers support and their promise of delivering rich content. However, CNet Reports that there is a concern among supporters about the cost of mass producing Blu Ray discs.

“But in at least one early test, according to a top manufacturing executive who asked to remain anonymous, a manufacturing line for HD DVD discs produced nearly twice as many usable discs as a similar line pumping out the Blu-ray format, over the same period of time. That translates into higher costs for Blu-ray producers. Moreover, component costs for Blu-ray can be nearly double HD DVD costs, because elements are still hard to find, the executive said. “

“Blu-ray”s rival, the HD DVD format, relies on a reasonably well understood process. HD DVDs are constructed very similarly to existing DVDs, and the basic discs can be made with relatively minor modifications to existing DVD manufacturing lines.

Blu-ray discs, on the other hand, require completely different equipment. Most of the major disc replicators–the companies that make DVDs and CDs–now have a test line or two up and running, but hard data on production costs remains scant.”

Because of expensive production cost of Blu Ray discs, consumers have to pay higher price to acquire these discs when they are available next year. Just as DVD movies and player were expensive to obtain back in VHS days, this will likely to occur. Some analysts states that once the cost of producing these disc comes down, Blu Ray discs will be very competitive against HD-DVD.

“That Blue-ray discs may start out pricey shouldn”t be a shock. They face a classic curve for new technologies, which are initially expensive as manufacturers work with small numbers of orders and lean how to streamline the process. Sony also disputes those high-priced estimates. “

Alperovich, Sony”s executive vice president argues that “if there is a short-term price gap, the advantages of Blu-ray–mainly more capacity and flexibility for things like gaming–should outweigh that concern.”

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