The digital home entertainment industry is booming, and this Christmas will see rival manufacturers falling over themselves to catch the consumer’s eye as they battle for market share. Matt Warnock investigates
Audio-visual technology, electro-gadgets, home entertainment – whatever you want to call them, they might be big boys’ toys, but child’s play they certainly aren’t. The global digital entertainment industry is now worth billions of euros a year and no time is quite as important to the sector as the festive period.
While consumers are lining their trees with tinsel, the big brands are drawing their battle lines, often choosing this time of the year to roll out flagship products, and 2007 is no different. “Christmas is hugely important to the industry. The public will be hitting the shops looking not only for cool kit to buy for friends and loved ones, but also for themselves.” says Tony Smith, the editor of Register Hardware (reghardware. co.uk), a leading UK technology website. “Advanced technology has never been cheaper and, with the shops full of the latest products, people want to treat themselves at this time of year.”
Do the iPod shuffle
Many in the industry believe that this Yuletide could witness the closest ever fight for the portable entertainment market, with the biggest challenge yet coming to iPod’s crown. Some crown it is too – over 110 million iPods have already been sold since its launch in 2001. The various incarnations account for about 70% of portable media player sales and, currently, around 50% of Apple’s total earnings.
However, Steve Jobs, Apple’s enigmatic CEO, hasn’t had it all his way this year. His vision for an iMovies store, where customers buy any movie to download directly on to their iPods and watch on the move, has hit a snag. Apple was unable to reach an agreement with any major film studios, with the exception of Disney of which Jobs is a board member.
The ultimate goal of imitating the all-conquering iTunes Music Store with AppleTV now seems a long way off. Insiders believe that this will allow other websites to get in on the act and also for other portable entertainment brands – Creative, Archos and iRiver, for example – to flourish.
In typical Apple fashion, that vision was quashed emphatically and stylishly when the California-based company unveiled its new generation of super-sexy iPods just in time for Christmas. The results are updates of the 1GB iPod Shuffle (€79), which now has a clip design; the new iPod Nano with video playback (4GB €149, 8GB €199); a sixth-generation iPod Classic in silver casing (80GB €249, 160GB €349); and the introduction of the iPod Touch with wi-fi and direct access to iTunes and YouTube (8GB €299,16GB €399).
“Just as people started to wonder how Apple could continue its growth, it revamps the whole range, adding features and quality along with a big wow factor,” says Peter Wilson, editor of Gadget Speak (gadgetspeak.com). Benny Har-Even, deputy editor of Trusted Reviews (trustedreviews.com) – a site that puts all manner of electronic gadgets through their paces
– agrees: “Apple has really strengthened its already strong hold. There are still challengers but, more than ever, they’re in Apple’s shadow.”
Before heading straight to your nearest Apple retailer, however, there are alternatives. Tony at Register Hardwear, for example, is enamoured with the SwiMP3 by Finis (€147), which is designed for underwater use. Meanwhile, the guys at Trusted Reviews are raving about the iRiver B20 (€245), which combines the usual MP3 and video player with a digital radio and video channel receiver. “The B20 hasn’t so much moved the game on,” wrote reviewer Riyad Emeran, “it has actually rewritten the rules.”
I want my DVD
While the MP3 market may not end up being quite as competitive as many predicted, there are plenty of wars elsewhere in the digital entertainment field and few are as fascinating as the fight to be heir to DVD’s throne. In the red corner, weighing in at 30GB, is Toshiba’s HD-DVD format, backed by NEC, Sanyo, Microsoft, Paramount Pictures and Universal; and in the blue corner, naturally, at 50GB is Sony’s Bluray system, whose supporters include Samsung, Sharp, Panasonic, Sony Pictures, MGM, Disney and Fox.
“The DVD (max 4.7GB) is the most successful consumer electronics product of all time, so the stakes are high. HD-DVD and Blu-ray take DVD to another level by holding so much more information and, therefore, offering higher definition pictures with even better quality surround-sound,” explains Har-Even.
Both HD-DVD and Blu-ray players are able to play traditional DVDs, but the problem is that they’re not compatible with each other. And while Blu-ray discs hold more space, HD-DVD discs can be produced more easily and cheaply. “Right now, Sony has a big advantage in that its PlayStation3 console is also a Blu-ray player. However, for the most part, consumers are waiting for a clear winner before buying, as no one wants to back the loser and then end up with a collection of unplayable discs,” says Smith.
This Christmas could play a major part in deciding which format does eventually come out the winner and, if you’re a movie buff who has to have the latest in picture and sound quality, there are various options available. You can get on the HD-DVD ladder with the Toshiba HD-E1 for about €415, while the company’s top-end player, the HD-XE1, has all the features and tricks you could dream of for approximately €660.
Sony is offering its ultra-spec BDPS500 Blu-ray player for €720 and the slightly less gadgety but no less gorgeous BDP-S300 at €481. Sharp, meanwhile, has joined in the Christmas bidding war with its BD-HP20H, which at €575 is an extremely attractive player with some terrific features.
Game on
Yet even this mightn’t be the most ferocious of this Christmas’ tussles. “The competition in the games consoles market is going to be cut-throat. Sony’s PlayStation3 (€575) is powerful but too expensive, and it needs to compete against its rivals. Expect a cut-price PS3 to be announced shortly,” predicts Smith. “Microsoft’s Xbox 360 (about €340) has an excellent array of top-notch games and has now been priced to take on Nintendo’s Wii. However,
there’s no question the Wii (€300– €400 depending on the package) is winning the war, outselling its rivals by a big margin. Hardcore gamers may hate it, but it’s proven a huge success with the general public.”
Indeed, Nintendo expects to struggle to meet Christmas demand, but it might not have things all its own way. The Xbox has a couple of aces in its hand in the shape of the ultra-sleek Elite version (€430) and the Halo 3 game, which shifted $180m-worth in its first 24 hours in the US.
While the console wars could go any way, Wilson is certain about what will be the must-have present of the year: “The iPhone has generated a lot of interest, but the iPod Touch is basically the same product without the messy phone contract but with all the cool interfaces.” Smith agrees: “It’s expensive, but it’s an amazing gadget that’s wowed pretty much everyone I’ve shown it to.”
With consumer technology coming so far in such a short time – from chunky 1GB mono MP3 player to touch-screen 16GB iPod in just six years – how far can personal entertainment go? “Consumers now want the freedom to seamlessly transfer their content between their various devices,” says Wilson. “At home they want a video library they can watch on their HD-TV, when travelling they want to transfer that content to a portable device that can also download. They want access to it all at any time, wherever they are. That’s not going to happen this year, probably not next year, but some of the pieces are falling into place.”
And when the big brands finally do get all their soldiers in a line and produce an interactive, all-encompassing, portable entertainment and gaming system, you can bet your bottom dollar it’ll be released just in time for Christmas.
FR » Business et divertissement
L’ensemble de l’industrie du divertissement digital vaut à l’heure actuelle plusieurs milliards par an et s’il y a bien une période essentielle pour ce secteur, ce sont les fêtes de Noël. “La technologie de pointe n’a jamais été aussi accessible et les gens veulent se faire plaisir à cette époque de l’année,” explique Tony Smith, éditeur de Register Hardware.
La période de Noël pourrait représenter le plus grand défijamais lancé à la suprématie de l’iPod. La stratégie d’Apple consistant à imiter iTunes – le conquérant sur tous les fronts – avec la marque iMovies n’a pas eu le résultat escompté et cela pourrait permettre à d’autres sites web et systèmes portables de se manifester. Mais Apple a rebondi. “Ils ont relooké toute la gamme, en ajoutant des applications et une nouvelle qualité suscitant un effet garanti,” explique Peter Wilson, éditeur de Gadget Speak. Pour lui, il n’y a aucun doute sur le must côté cadeau cette année : “Le iPhone a suscité un grand intérêt, mais le iPod Touch est le même produit avec tous les interfaces fonctionnels et sans l’obligation de passer un contrat de téléphonie, une source de tracas.”
Mais peu de guerres commerciales dans le domaine du divertissement digital sont aussi fascinantes que celle sur le futur du DVD – entre le format HD-DVD de Toshiba et le système Blu-ray de Sony. Les deux ont la capacité de lire des DVD traditionnels, mais leurs produits ne sont pas compatibles. Tandis que les disques de Blu-ray stockent plus d’espace, ceux de HD-DVD peuvent être produits à meilleur coût. “Les consommateurs attendent clairement un gagnant avant d’acheter – personne ne veut se retrouver avec une collection de disques non utilisables,” confirme Smith.
D’après les prédictions de Smith “la compétition dans le marché des consoles de jeux s’annonce aussi une lutte terrible.” “La PlayStation3 de Sony est puissante mais pas trop onéreuse. La Xbox 360 de Microsoft offre une excellente collection de jeux de premier ordre, mais il va sans dire que la Nintendo Wii a une énorme marge d’avance sur ses concurrents.”
NL » Laat je entertainen!
Digitaal entertainment brengt jaarlijks miljarden op, met Kerstmis als duidelijke piekperiode. “Geavanceerde technologie was nog nooit zo goedkoop en mensen verwennen zichzelf graag in deze tijd van het jaar”, aldus Tony Smith, redacteur van Register Hardware.
Voor de iPod zou deze kerst wel eens de grootste uitdaging kunnen worden. Het doel om het overweldigende succes van iTunes te imiteren met iMovies liep niet zoals Apple had gepland en daarvan zouden andere websites en draagbaar entertainment kunnen profiteren. Apple heeft zich ondertussen wel herpakt. “Het hele assortiment is vernieuwd met meer functies en kwaliteit. En een flink wauw-effect”, zegt Peter Wilson, redacteur van Gadget Speak. Hij laat geen twijfel over hét cadeau van het jaar: “De iPhone kon op heel wat interesse rekenen. De iPod Touch is hetzelfde product, maar dan zonder het irritante telefooncontract en met alle hippe interfaces.”
De spannendste strijd in de digitale entertainmentsector draait echter rond de toekomst van de dvd, waarbij het Toshiba HD-DVD-formaat het opneemt tegen het Sony Blu-raysysteem. Beide kunnen traditionele dvd’s afspelen, maar zijn niet compatibel met elkaar. Blu-raydiscs hebben meer capaciteit, maar HD-DVD-schijven zijn goedkoper qua productie. “Consumenten wachten op een duidelijke winnaar voor ze geld uitgeven. Niemand wil een collectie onspeelbare schijfjes”, zegt Smith.
“Ook de concurrentie onder de game-consoles zal ongenadig zijn”, voorspelt Smith. “De PlayStation3 van Sony is krachtig, maar te duur. De Xbox 360 van Microsoft heeft een uitstekend assortiment topgames. Beide rivalen worden echter geklopt door de Wii van Nintendo.”
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