Let the gaming wars begin!

The Independent is already asking whether Sony’s Playstation 3 will be the next Betamax. The article notes that Sony is expected to lose £1.7bn ($3.3 billion) on the PS 3 over the next two years.

One of Sony’s big gambles is including Blu Ray high definition DVD technology. The rival technology is called HD. Manufacturers have not settled on a high definition standard and studios currently produce content in both formats.

Sony’s release of a Blu Ray DVD players landed with a thud earlier this year. At the time some analysts speculated (or hoped) that the consumers were waiting for the PS 3. Why pay for for Blu Ray DVD player when the PS 3 can play Blu Ray and provide a gaming platform? If the PS 3 does not sufficiently penetrate the market, the supporters of Blu Ray will will have to work fast to save the technology.

On the other hand, if PS 3 and/or Blu Ray fail, it’ll be a long time before we’ll know whether its because of consumer tastes, burdensome technology, or failed logistics.

Now is not a good time to be a Sony shareholder …

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