The Consumer Electronics Show starts Wednesday in Las Vegas under the dark cloud of a recession and a sharp downturn in consumer spending.
Nearly 2 million square feet of convention hall will be stocked with the latest mobile phones, portable music players, digital cameras and expensive flat-screen televisions.
But many eyes will be on Blu-ray, which for the first time has the floor largely to itself as the heir apparent to the DVD. Over the last decade, DVD players and discs have generated tens of billions of dollars for Hollywood and the consumer electronics industry, so the pressure for a blockbuster sequel is high.
This year will be crucial for the new format. Heavy holiday discounting and the natural decline in electronics prices over time have pushed prices for some Blu-ray players under $200, a drop of well more than half in the last few years — and into the realm of affordability for many. At the same time, Blu-ray’s backers, including Sony and the Walt Disney Co., face a growing chorus of skeptics that says the window for a HD disc format may be closing fast.
One reason is that discs of all kinds may become obsolete as a new wave of digital media services starts to flow into the living room. On Monday, for example, the Korean television maker LG Electronics plans to announce a new line of high-definition televisions that connect directly to the Internet with no set-top box required. The televisions will be able to play movies and television shows from online video-on-demand services, including Netflix.
“The Blu-ray format is in jeopardy simply because the advent of downloadable HD movies is so close,” said Roger L. Kay, president of Endpoint Technologies Associates, a research and consulting company.
“Streaming video from the Internet and other means of direct digital delivery are going to…