Microsoft loss is disc makers gain: Xbox 360 hack spurring demand for DL DVD discs

November 9th, 2006, 23:59 Posted By: wraggster

Sources at Taiwan optical disc makers makers indicated demand has been warming up for DVD+R/-R DL (single-sided double-layer) discs recently, following the increased availability of a modding hack that allows for the playing of pirated games on Xbox 360 consoles.

According to various media reports, the hacked games need to be burned onto a dual-layer DVD using a special process before they can be played.

Before the hack became widely available, sales for DVD+R/-R discs had been sluggish due to its relative high retail price and limited applications. Demand is also driven from the extending penetration rate of DL-support recorders, the sources added.

Global DVD+R/-R DL disc shipments are expected to reach 100 million in 2006 and should double in 2007, according to Japan-based Fujiwara research. Taiwan players are more optimistic about shipment trends, projecting sales of more than 100 million DVD+R/-R discs for this year.

Current DVD+R/-R DL disc shipments are dominated by Taiwan makers including CMC Magnetics and Ritek, with CMC taking about a 20-30% share of the market while Ritek has 60-70%. With Japanese vendors placing more emphasis on Blu-ray Disc (BD)-R/-RW and HD DVD-R deployment, Taiwan vendors should see stronger side benefits accordingly.

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