HD DVD Keeps The Pressure On
The HD DVD consortium is rolling out an attack plan like no other I have seen in the consumer electronics marketplace. In a move to put an HD DVD player in every house, the purveyors of HD are leading the charge with low prices, that continue to slide downward almost daily.
Now reported is the news of KMart dropping Blu-ray players before Christmas. While those stores might not be the first place that shoppers think of when the word electronics comes up, it is a very large outlet for exposure. Now Blu-ray has one less place to battle for customer hearts and minds. The HD DVD Promotions Group has apparently become a spokesperson for KMart, as it explains that KMart feels that Blu-ray is indeed, the ‘high priced spread’ and will find its greatest favor with the home theater crowd, while ‘Average Joe’ will simply have an HD DVD player to keep up with technology, and not lose out on features offered on that format versus standard DVD.
Toshiba HD-A2
The opening salvo in this before Christmas war for the customer dollar seems to be the Toshiba HD-A2, which as previously reported here is leading the sub-$200 charge with various retailers having that model for prices from $199 all the way down to $164 (at Buy.com with season 1 of Heroes included at no charge). WalMart and Circuit City have similar deals, while Best Buy already has pricing listed for the next player to be released.
just a little more slick in appearance the HD-A3 will take over when the A2 model sells out.
While the HD-A2 is being highly promoted, it seems that its end of life is already in the cards, as a new model, the HD-A3 will be promoted by Sears after Thanksgiving. The Black Friday deal has already been leaked. The Toshiba HD-A3 will be $169, and include 2 free movies in the box, with the choice of 5 more by mail.
Chances are good that once the HD-A3s appear in strength, the A2s will go down to the $100-$120 range. At that point, the remaining units will fly off the shelves.
Remember that these prices are most likely loss-leaders, because as we all know, the software is where the big dollars flow. The free discs and quality players on the cheap is a Pavlovian move to condition the buying public to begin the move to obtaining the more expensive and profitable HD DVD format, while the standard DVD starts its inevitable . This is not to say that the slope will not be gentle, just that the slide will happen.
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December 9th, 2007 at 3:20 pm
[...] the Blu-ray faction is finally giving the HD DVD makers some competition. Remember, when there was nothing inexpensive on the horizon? The PS3 was the only inexpensive player for Blu-ray [...]
March 13th, 2008 at 2:09 pm
[...] Toshiba has really made some big mistakes here, not the least of which is removing HD DVD from the market completely. As I had stated before, it is a format that had no serious flaws, it was simply the wrong horse to back. The total cost to Toshiba for this mistake is estimated to be around 1 billion dollars. Toshiba is a huge conglomerate, but a billion dollar mistake is not pocket change to any non-government entity. [...]
May 27th, 2008 at 4:31 pm
[...] expects more of the same, and profit margins stay low for all concerned. Remember that certain Toshiba HD-DVD players were cut to the bone less than 14 days from being released. The idea was to achieve momentum for HD [...]
May 27th, 2008 at 6:35 pm
[...] Toshiba has really made some big mistakes here, not the least of which is removing HD DVD from the market completely. As I had stated before, it is a format that had no serious flaws, it was simply the wrong horse to back. The total cost to Toshiba for this mistake is estimated to be around 1 billion dollars. Toshiba is a huge conglomerate, but a billion dollar mistake is not pocket change to any non-government entity. [...]
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