NEC promises chip will increase functionality of Blu-ray players while driving down prices

NEC is banking on the world’s first chip that combines signal processors with memory that controls graphics, audio and other functions to double its sales of Blu-ray hardware in the next two years.

The company expects the EMMA3PF chip to raise its revenue from Blu-ray products to US$378 million in the year ending March 2011.

NEC plans to increase its share of Blu-ray products by offering deep price cuts, which other companies have started and are necessary for the market to grow.

It hopes to challenge rivals such as Panasonic, Broadcom and Sigma and capture 40 per cent of the market by March 2009. Market share is predicted to rise to half in March 2011.

Shigeo Niitsu, associate vice president of NEC Electronics, said they had “gained an edge” over competitors with the new chip.
“We will do what it takes to keep pace with market price falls of 30 per cent to 40 per cent to keep our lead,” he said.
The chips will start sample shipments in September – we would like to hear your views on whether they really will drive Blu-ray player prices down.

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