[quote name='Sporadic']competition is good for the consumer. Always. I can't think of a time when competition isn't good.[/QUOTE]
Y'know, I bristle at this. Not because I disagree, and not because the competition has brought HDTV sets and HD/BR players dropped in price at an unexpected rate (and they aren't done yet), but because Paramount going HD is not "competition." In fact, IMO, it is the precise *opposite* of competition.
Now, you can point out that I support BR and disregard anything I have to say, and that's fine. If that's you, go ahead and skip on to the next post now.
*elevator music*
Alright, now that that's out of the way, the reason I say it is not competition is because Paramount's decision to go HD DVD exclusive was not dictated by the consumer. The decision was made by the HD DVD association (whatever their actual group name is). The consumers were saying "Blu-Ray all the way" via their choices, so, on by itself, being HD-exclusive is akin to saying "we want to make 67% less profit than the format-neutral groups, or 50% less (half of 67%) than BR-exclusive groups." The same argument can be made of BR-exclusive groups as well: "we want to make 33% less profit than format neutral groups." Just to be fair.
So, a massive financial incentive was given to Paramount. To paraphrase the now HD-exclusive Godfather

lol

, it was an offer they couldn't refuse. Up front, $150 million is a hell of a lot more money than they would earn from 67% of the Hidef video market at this point. At $20 a movie, they'd have to sell 7.5 million discs to make that kind of cash (not counting all the costs of producing said 7.5m discs). 7.5 million discs? To put that in perspective, that's 2.5 times the number of *total* hidef discs (irrespective of format) sold thus far. Again, this offer to Paramount was something they'd be damned foolish to turn down.
In the end, though, I do bristle that this can be considered "competition," at least in the laissez-faire sense; it goes against the grain of the consumers dictating what the market looks like. The consumer had no say in this decision, simply put.
Full disclosure for those who don't follow the "format war" thread: I own a PS3, and am a de facto BR supporter. Feel free to reread my post and interpret as a braying fanatic BR fanboy if you so choose. After that, I encourage you to join the format war thread, as I'd like to continue the conversation over there:
http://www.cheapassgamer.com/forums/showthread.php?t=132555&page=36