Why did Betamax lose to VHS tapes? These are the most famous wars of technology [TOPtech]

In business about the victory of one company over another a better product or service is not always decisive. Sometimes the key to success is aggressive marketing or controversial advertising, and sometimes – a stroke of luck. Usually, however, we are dealing with a mix of several complementary factors, as evidenced by the following examples.

Here are three “format wars” that changed the world of new technologies forever.

VHS vs. Betamax (1975–1988)

When in 1974 Sony presented a prototype player BETAMAX, it seemed that the Japanese had an ace up their sleeve that would allow them to rule the video industry for years. The Sony standard allowed to save the image in a higher quality than in the case of the format created by JVC VHS. Betamax cassettes were also more durable, and allowed much more convenient rewinding of the tape.

Betamax, however, lost to VHS, and with a twist. Reason? Higher player prices ($300 on one side, $1,000 on the other), lower capacity of the cassettes themselves, Sony’s entanglement in a war with film studios, and a terrible marketing strategy.

The porn industry has also contributed. In the late 1970s and early 1980s, nearly half of the videotapes sold in the US contained adult content. The makers of these films opted for cheaper VHS, which also contributed to JVC’s later success.

From the war we fought with JVC, we learned one very valuable thing – it’s not just the equipment that counts

– recalled years later Eric Kingdon, who worked at Sony during the famous format war.

Nintendo vs. Sega (1985–1995)

At the turn of the 1980s and 1990s, nothing aroused such excitement among gamers as the rivalry between two Japanese console manufacturers – Nintendo and Sega. For a long time, both companies went head to head. Nintendo had the NES (Nintendo Entertainment System) which was a “family console”. Sega Genesis, on the other hand, was a proposition for a “rebellious teenager”, as evidenced by a series of controversial advertisements.

When in 1992 Sega achieved a record 55 percent. console market share, it seemed that the creators of Sonic the hedgehog would emerge victorious from this war. Then Nintendo struck a decisive blow.

It was the console Super Nintendo (SNES)which has achieved a huge sales success – also thanks to great games such as Super Mario World.

Sega tried to maintain its position in the market, but its next consoles – Saturn and Dreamcast – they no longer aroused so much interest among both game developers and players. In addition, in 1994, a new player appeared on the scene – Playstation. You probably already know the rest of this story.

Blu-ray vs. HD DVD (2006–2008)

This is another format war in which Sony has participated – this time on the winning side. Technology prototype Blu-ray was presented in 2002. However, it was unable to enter the market due to the high price of lasers necessary to play records.

Then she appeared on the stage Toshiba and her HD DVDs, which was supposed to be a cheaper alternative to the Blu-ray format. Toshiba has lured several film studios to its side, including the famous Warner Brothers, as well as Microsoft, which has included an HD DVD drive in its Xbox 360 console.

The decisive battle was supposed to take place during the CES 2008 electronics show in Las Vegas, but HD DVD lost it by walkover.

Just before the start of the fair, Warner announced that it was switching to the “blue” side. The betrayal by the most important partner was a blow from which the HD DVD form could no longer recover.

Sony took the full pot, and Blu-ray discs dominated both the film industry and the video game market for years to come. Today, however, this format does not see so well, due to the increasing dominance of streaming, VOD services and digital distribution of games.