DVD struggles to find slot in PC market

DVD struggles to find slot in PC market
Tom Foremski
Supporters of DVD drives are concerned that the rapid rise of sub $600 PCs is holding back the use of the technology and delaying its adoption as standard computer system peripheral.
With sub-$600 PC representing more than 20 per cent of US retail sales and with strong competition and razor thin profit margins among PC makers, low end models do not offer DVD drives. DVD drives represent a large potential market with many suppliers of components and subsystems. DVD has been available for more than two years but is making slow progress in becoming widely adopted within PC systems.
An additional problem holding back DVD is the lack of titles, resulting in little incentive for PC customers to order DVD equipped PCs. And companies are holding back on developing DVD titles until there is a larger potential customer base, creating a chicken and egg situation. This could change once Sony introduces its DVD based Playstation II which will provide a large customer base for title developers.

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