Also component costs for Blu-Ray are nearly double that of HD-DVD. Sony still disputes the price estimates however. "If there is a (cost) difference, that has yet to be determined," said Sony Pictures' Adrian Alperovich, the studio's executive vice president in charge of new business development. "There are (manufacturers) on both sides of the equation. If there is a difference in price either way, we think it will be minimal."
Alperovich also argues that the advantages that Blu-Ray has over HD-DVD outweigh a possible price gap. Blu-Ray requires completely different production equipment to DVD, whereas basic HD-DVD can be produced with relatively minor modifications to existing DVD manufacturing lines. A senior executive a disc manufacturing facility has been worried about Blu-Ray for some time now.
"We feel that some of the (Blu-ray backers') statements are setting unrealistic cost and price expectations for the content owners they are courting," said the executive, who asked to remain anonymous. "They're right at the zero point in terms of operational knowledge."
Source:
News.com