Despite large growth in the high definition market, standard DVD sales continue to sag, and home video revenue will continue to fall, report a few notable analysts.

According to Reuters, 5 million HD movies have already been sold this year (mainly Blu-ray) and that puts the pace far ahead then 2007 which saw only 10 million movies sold for the entire year.

This strong growth however is not enough to make up for the continued sagging sales of standard definition DVDs. In 2006, movie studios generated $25 billion USD in revenue for home video releases. In 2007 the number fell to $23 billion and Citigroup analyst Jason Bazinet believes that number will fall again this year to $21.4 billion.

Analysts also feel that consumers see less benefit in upgrading to Blu-ray then they did with the switch from VHS to DVD. Many consumers don’t even have the necessary equipment to enjoy Blu-ray, including Blu-ray players, HDTVs or surround sound setups. Price of course is another significant barrier with most Blu-ray players costing about $400 USD, about $250 USD more expensive than even the best upscaling standard DVD players.

Sony Electronics CEO Stan Glasgow agreed in March that a price drop was necessary for more market penetration but that the necessary $200 price point wont be available until at least 2009.

“I don’t think $200 is going to happen this year. Next year $200 could happen,” said Glasgow. “We’ll be at a $300 rate this year. $299 will happen this year.”

Another factor is that Blu-ray movies usually sell at a $15 dollar premium over their standard definition counterpart (yes, even at Amazon) making the alternative not as pretty usually despite its much improved audio and video.

The infamous torrent tracker The Pirate Bay has hit another milestone, 12 million peers. Making the announcement more impressive, is that only 5 months ago the site was at 8.5 million peers served.

More intriguing, from a torrent standpoint, is that TPB admin brokep says that since 2004 that amount of actual seeders on the site has increased substantially compared to hit-and-run leechers. He continues on that in 2004 only 20 percent of peers were seeding but that that number has increased to almost 50 percent, a huge number for a public torrent tracker.

Brokep added, “We have more seeders than leechers now. It was like 25% seeders 75% leechers [in 2004/2005], since then it’s gradually shifted over to 50/50.″

As if 12 million peers wasn’t enough, brokep and the rest of TPB staff want a new milestone, and soon. “What we want you to do is to spread the word to your friends and make more people share files! Let’s break 15 million - and 20!”

Samsung and Sony will reportedly spend 1.8 trillion South Korean won (about $1.9 billion USD) to buy a new facility to upgrade their S-LCD Corporation joint venture.

The new upgrade will allow the companies to produce enough 8G LCD panels to meet “increasing global demand.”

The Wall Street Journal adds that the “new manufacturing line will be located in the Tangjeong complex southeast of Seoul, where production will start in 2009. Monthly output is initially expected to reach 60,000 units, versus 50,000 sheets currently.”

Samsung recently reported a robust first quarter flat-panel division profit of about 1.01 trillion South Korean won. The company also reported that margins were at a four-year high.

Both companies expect LCD TVs to be in high demand globally in preparation for the Summer Olympic Games in China.

The Chinese state media has announced that its country has now surpassed the United States as the world’s number one Internet-using population.

The last numbers available to Reuters, at the end of February, showed that China had 221 million Internet-users, a measly 5 million behind the US.

“Despite a rapidly increasing Internet population, the proportion of Internet users among the total population was still lower than the global average level,” the Xinhua news agency said, quoting the Information Ministry.

Despite the massive number of Internet users, the proportion was only 16 percent at the end of the 2007, compared to 19 percent for the world average. The US for example, has a proportion of over 70 percent.

China has the fastest growing population of Internet users however and BDA China, a Beijing-based research firm, added that it expects China to hit 280 million Internet users by the end of the year.

Apple has announced the release of the fourth beta version of its popular iPhone software development kit (SDK).

Apple’s developer website explains:”The fourth beta version of the iPhone SDK includes Xcode IDE, iPhone simulator with Open GL ES support, Interface Builder, Instruments, frameworks and samples, compilers, and Shark analysis tool”. The SDK also promises to improve “Audio Toolbox, NSXML Parser support and redesigned UIFont.”

The announcement came during the second quarter financial results press conference call where Apple executive discussed the SDK and future releases. The company says they have been in contact with over 200 Fortune 500 companies as well as 400 higher education institutions that are applying to become iPhone developers.

Apple CFO Peter Oppenheimer added that the company has already signed up 200,000 developers.

Nintendo president Satoru Iwata has revealed that the company is not likely to cut the price of its ever popular Wii and DS gaming systems in the foreseeable future.

“Our earnings projection for the year is not based on hardware price cuts, and I don’t think we are going to need them,” said Iwata.

Despite supply shortages on huge demand for both systems, Nintendo revealed its fourth quarter earnings this week which showed the company has sold 18.6 million Wii consoles over the last 12 months, putting worldwide sales since launch at almost 25 million. The company also added that total sales were up 73 percent year on year “while operating income was up 115.6 percent and profit up 47.7 percent.”

Nintendo added that it hopes to sell 25 million consoles worldwide for the upcoming fiscal year. To meet growing demand, the company will also be ramping up production from 1.8 to 2.4 million consoles every month. Maybe this year there will be Wiis on the retail shelves next to all those PlayStation 3s and Xbox 360s.

Citing “robust demand” for Xbox 360 consoles, Microsoft’s Entertainment and Devices division (Xbox division) has finally reported a profit, making $89 million USD for the Q3 fiscal 2008.

“During the three months ended March 31, 2008, Xbox platform and PC game revenue increased $418 million or 85% primarily as a result of increased Xbox 360 console sales, Xbox 360 video game sales, and Xbox Live revenue,” the company said. “Xbox platform and PC game revenue increased $1.4 billion or 42% during the nine months ended March 31, 2008, as a result of increased Xbox 360 console sales, video game sales led by Halo 3, Xbox Live revenue, and Xbox 360 accessory sales.”

Total sales for the fiscal year were up 34 percent to $6.57 billion. Microsoft cited 7.5 million 360 sales for the huge revenue growth.

The other electronic in the division is the Zune media device, which also appears to have helped to bring about the profit for the Q3. Microsoft did not go into any details however.

Revenue and possibly profit is expected to see a large surge in the upcoming weeks with the release of Grand Theft Auto IV which has some analysts predicting $400 million USD in sales opening week for both the 360 and PS3.

So we’ve got it on authority that the second-gen iPhone is already well into testing, and numerous units are floating around in super secret pockets. A trusted source got a chance to check one out, here’s what we’ve heard.

The first thing people will notice: the 2nd gen iPhone will be about the same size and shape as the first gen. It will, of course, have 3G. And proper GPS! The most noticeable physical difference is back of the phone is no longer metal — the whole thing is glossy black, from top to bottom. The volume buttons are now chrome. Because it’s got a little less metal to deal with, it doesn’t have quite as many angular edges. The battery is (still) not removable. The phone itself will be slightly thicker than the first gen device. The headphone jack will no longer be recessed, and will finally be flush with the body. The device itself uses roughly the same size and resolution screen as the first generation product. No solid word on battery life or storage capacity. It could ship (or be introduced) as early as July — but it’s worth noting that none of this is necessarily finalized, and any of it could change between now and its introduction. You really never know with Apple!

If you’re willing to make two trips, you can run down to your local Toys R Us and put down a $200 deposit for a guaranteed Wii on Sunday (April 27, 2008) when all stores nationwide get a huge shipment from Nintendo. No bundles or any other unnecessary stuff you don’t want. Just one Wii. Yours today for $200 and $50 later on Sunday plus tax. This is the best Wii deal I’ve ever seen. Period.

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