Interesting point on Bluray pricing. I am not sure it is as simple as 'you have to have a market before you can drop prices'. Bluray seems to be teetering on the edge of early adoption/mass adoption, and I simply do not think it will gain greatly as long as pricing relative to DVD remains as high as it is. I'm sure they have their price elasticity models, but I certainly remember significant DVD price reductions around year 3 to spur mass appeal.
People see things in terms of cost and benefits.
DVD for most people was a quantum leap from VHS - a dramatic improvement in picture and sound, random access, disc size, ease of use etc.
I`m not convinced that for
most people, Blu-ray offers the same perceived improvement over DVD.
I think therefore that prices need to be
even lower at this point in the formats life cycle, to induce people to buy Blu.