Controlling What Survives In The Market

The Enemy's HQ
Originally uploaded by Phalanx.

I was listenin to the Wall Street Journal Report the other day and something very interesting was discussed -- the success of HD-DVD or Blu-Ray DVD, and the WSJ predicted that HD-DVD would be come the standard because WalMart -- in its quest to supply the US consumer with the cheapest possible prices, that is hammering manufacturers to provide cheaper and cheaper wholesale prices -- will be stocking its shelves with HD-DVD and not Blu-Ray; simply because the manufacturing costs and therefore the profit margin for the retails in lower on Blu-Ray than on HD-DVD. T

hus WalMart won't be stocking Blu-Ray, and because of WalMart's market share, buying power and hypnosis of consumers, Sony and its colleagues are going to be assed out.

Now we'll have to see what actually happens, but it's a sure bet by next year this time we'll know about the fate of Blu-Ray.

The problem Sony has is that they bet the farm on the Blu-Ray technology by installing it in its Playstation 3 (the main reason by the platform is so expense and isn't performing that well). So if Blu-Ray crashes, because WalMart won't stock it will Sony have to design a Playstation 3 with HD-DVD? In order to make the platform relevant?

Sony fired the father of the Playstation recently, so no doubt the Playstation 4 (when it comes out a year before the Mayan Calender ends) will use whatever is the agreed upon DVD format of the time or won't even require a removable media option, because all games will be downloaded over the internet (which would lead to unlimited pirating).

However the more indisious thing about this story is WalMart -- the whims of that oppressive retailer will be dictating the success of new products? That's an extremely scary notion. WalMart is known for playing hardball with manufacturers to get prices as low as possible -- many a company will tell you that in order to meet the WalMart price requirements outsourcing and using sweat-shop child labor has become part of the business practice.

In our quest to keep buying whatever the fuck we can think of, we're in effect stiffling innovation and fueling child labor (read slavery) in various parts of the 3rd World. And WalMart is the Pied Piper of Hamlen leading us all to the brink of destruction -- happily!!!