After decades of losing format wars (anyone remember the Betamax vs VHS wars?), Sony finally won one in the last decade with Blu-ray. Pity for them that it’s turning out to be a pyrrhic victory.
The Blu-ray optical disc format, once a bastion of hope for reviving the home entertainment industry, is struggling to survive under the assault of video-on-demand and downloads.
In a new financial forecast, Sony has warned of heavy losses primarily due to its exit from the PC business and because “demand for physical media [is] contracting faster than anticipated.”
In two weeks, Sony will announce its financial results. The company expects to post a net loss.
via Bye-bye, Blu-ray: Video-on-demand and streaming options are gaining on you – Computerworld.

So Blu-Ray is finally going down? That’s a big problem – it never got as widespread as DVDs*, but the margins were higher on them.
* Side-note, but part of that was because they made it much harder to run them on your PC. You couldn’t do it with Windows Media Player.
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