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Sony and Blu-ray For Sony, 2002 was a banner year. The final tallies wouldn’t come in until its annual report in March of 2003, but the corporation’s year-over-year increase in net income was significant. The Sony Pictures division had dominated a good chunk of 2002 with the financial successes of Spider-Man, xXx, and Men in Black II. Its PlayStation 2 gaming console had shipped its 10 millionth unit, with another 8.5 million units projected for the year’s holiday season; it was handily winning its own console war. In short, it was a bad year to be a competitor. Blu-ray was already named and under development by the time the annual report came out in 2003; its initial announcement came in February of 2002, so its first corporate mention was actually in the previous annual report. The goals for the format in both reports were lofty: Sony had nothing less on its mind than domination of every direct or tangential market segment. Key to the development of Blu-ray was a piece of laser technology, partially responsible for the format’s name: a blue-violet laser diode, developed by Sony and operating on a wavelength of 405 nanometers (nm), capable of reading and extracting much denser blocks of data than the red-laser diode used to extract data from CDs and DVDs. The blue-violet laser diode was conceived and developed specifically for high-density optical recording and playback, and the initial anticipated results were impressive: between 23 and 27 gigabytes of storage space on a single-layer Blu-ray Disc (by comparison, a single-layer DVD stored 4.7 gigabytes, and even the dual-layer DVD only hit 8.5 gigabytes).
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