OCT. 1, 2010 • The PlayStation 3 has been the Blu-ray player of choice in the U.S., holding a two-to-one advantage over dedicated players until the last six months. According to a white paper by research firm Centris, 47% of Blu-ray U.S. households now watch their discs on the PS3, compared to 45% on dedicated players. The report also found that 85% of Blu-ray households also owned HDTVs, compared to 62% for DVD households. Viewed from a different perspective, 25% of HDTV households own a Blu-ray player, up from 15% in 2008.

Impact: Our take has been that Blu-ray would not be a major standout feature for the PS3 in its early years.  However, as the price point of the system came down and Blu-ray gained more mass market traction we thought this could change.  Now Blu-ray has a prominent presence in retail.  In stores like Target there are large sections dedicated to Blu-ray with prominent signs saying these movies will play on any Blu-ray device or PlayStation 3.  We think this is excellent marketing for the PlayStation 3 system.  In 2010 and 2011, Blu-ray is truly a strong selling point for the PS3.