That language would seem to indicate that the companies due royalties from Blu-ray Disc intellectual property are experiencing problems with manufacturers' paying up--or are expecting such problems. We've seen some manufacturers get called on IP-royalty issues before, with optical-drive IP-- and more Asian manufacturers (especially in Taiwan and China) got into the manufacturing game. Given that Blu-ray Disc products have emerged largely from Japan so far, I imagine that licensing compliance hasn't been as much of a problem.

But earlier this year, at , a number of China-based manufacturers showed Blu-ray Disc players. For example, players from both Sherwood America and Insignia are based on Chinese OEM designs. Perhaps the licensing move--as well as the carefully worded language in its announcement--reflects the expectation that many more manufacturers will enter the Blu-ray game in the coming year. A single, one-stop-shop licensing authority for Blu-ray may help to head off licensing-compliance issues, as well as to make chasing down offenders easier.

Ultimately, a 40 percent reduction in royalty costs marks a huge win for consumers. With such a dramatic drop in manufacturers' costs, consumers can expect to see lower-priced players on the market sooner. Suddenly, the $150--or even $100--Blu-ray Disc player appears within reach, possibly by the end of this year.