January 14, 2008 9:49 AM PST

Toshiba cuts HD DVD player prices

Toshiba may have taken a huge hit recently, but the HD DVD supporter is striking back.

Barely a week after Warner Bros. announced it would no longer put out movies on the HD DVD format, of which Toshiba is a primary supporter, the company announced it is lowering the prices on all three models of next-generation DVD players.

Toshiba HD-A3

Toshiba will now sell its entry-level HD DVD player for $149.99.

(Credit: CNET Networks)

The entry-level model, the HD-A3, now goes for $149.99, the HD-A30 for $199.99, and the HD-A35 for $299.99. That's about $150 to $200 worth of discounts on all models.

The new pricing from Toshiba is well-timed, according to Paul Erickson, director of DVD and HD market research for The NPD Group. Holiday promotional pricing is essentially over for all the major manufacturers of rival disc format Blu-ray, as well as other HD DVD makers.

"For them to drop MSRPs now couldn't come at a better time," he said. "It was a gap Blu-ray was able to close down upon during holiday sales."

In the battle between HD DVD and Blu-ray, HD DVD's primary advantage from the very beginning had been cheaper prices on players. But Blu-ray has responded, lowering its prices and offering popular promotions, like Wal-Mart's giveaway of 10 Blu-ray titles with the purchase of a Sony PlayStation 3 this past holiday. But preferences over one format or the other aside, price is and probably always will be the determining factor in sales.

"The larger challenge for both camps is twofold: getting the hardware into people's homes. Toshiba did very well selling $99 and $199 players (during the holidays), but that didn't necessarily translate into a big jump in movie (sales)," said Erickson. "Unless there are serious promotions going on...people aren't going out and buying in explosive numbers on the Blu-ray side either."

"Even if we promote a single format...people are still not going to pay three to four times as much for a player, they're not going to pay double the price for movies," Erickson said, "just because they're accustomed to much cheaper pricing on standard-def DVD."

Originally posted at News Blog
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Add a Comment (Log in or register) 22 comments (Showing first 20 comments)
Memo to Toshiba
by iamwho January 14, 2008 3:02 PM PST
HD-DVD is dead. Admit it. Cut your losses. Move on. You must know that Universal and Paramount will soon jump ship. You're a Japanese company so you must know of the concept of "saving face".
Reply to this comment
Sony fudged the numbers
by Doggyl January 15, 2008 6:01 AM PST
Anyone find it strange that there are so many BlueRay discs out there while players are sitting on the shelves?

Anyone take into account that with every PS3 sold they were giving away anywhere from 1-10 BR discs for FREE.

I wonder how many of Sony's numbers are from actual sales and not discs moved. Remember the initial PS3 sales figures were over inflated by PS3 units sold to retailers, not purchased from them.

The number of BR discs that were actually SOLD are probably alot less then the number of HD DVD's sold.

It's a shame that Sony had the deep pockets to push BR into our homes and buy the numbers to convince WB and all those other publishers.

Sony may have crap manufacturing, customer service, customer loyalty, and lack any sort of remorse for the faulty products that they rush through the door. What Sony does better than anyone else is MARKETING, Sony gets people to love the crap that they produce untill they push out the competition so you are stuck with dealing with bad products.
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it's all about the price of movies
by shad474 January 15, 2008 6:48 AM PST
yes,the price of the player is a factor but for the average person the price of the movies is the biggest reason for not buying a next gen. system. why pay $30 for a movie when you can get the same low def. one for $15?most people like me by a movie watch it once and place it on a shelf to collect dust (except for a few select titles).
Reply to this comment
I wish HD-DVD would have gotten its act together
by 74dar74 January 15, 2008 7:33 AM PST
I've owned HD-DVD for a while now with the 360 add on, and just recently got PS3 with bluray. Im still convinced HD-DVD looks better. I actually compared "The Fountain" on same 61" 1080p tv, on the 2 different tv inputs, freezing on certain frames and switching back and forth between the same frame on HD and bluray. The HD version ( of this movie at least) clearly is more vibrant and better looking. I suspect many discs available on both formats, look better on HD.

I'm sad to see the better format in my opinion die out. The powers that be in the HD-DVD camp were dopes. If the technology was very similiar to DVD, prices should have reflected it. The HD discs should have always been $5-$10 cheaper than bluray discs. That wasnt the case. And when the $400 PS3 system came out, the Xbox HD add on should have been dropped to $100 at most. I mean, it is an add on...useless by itself. Would it have killed them to take a slight loss on the player at $100 sale price, and yet maybe won the war? The HD camp was just not competitive with prices when they should have been and now its too late.
Reply to this comment
HD-DVD loses and the early adopters start crying
by lserna January 15, 2008 8:13 AM PST
I can't stand all these early adopters who want to do nothing but complain that HD-DVD shoudln't have lost the format war and now have to suck it up and throw their players and movies into the trash. If you had simply listened to CNET's advice and waited to find out who would prevail as the winner of the format war, we wouldn't have to listen to your whining. Unfortunately, too many people have no patience and love to pull out their credit card as soon as some new technology becomes available. You have no one to blame but yourselves. Go find someone else to whine to.
Reply to this comment
War is still on.
by Ksal005 January 15, 2008 9:08 AM PST
I'm waiting for either side to give in. The war is not over. HD-DVD lowered the prices on it's players. Thanks to PS3, which is overrated in my opinion, the BR side is winning in sales. Stand alone players, the numbers don't favor Sony as much.

I don't own either player. I'm not a Sony fan at all but I'll be buying the winner, which means I'll probably be waiting for quite some time. HD, BR, same 1080p output. The difference is in the extras which I really don't care for.

Price on both player and movies will win this war.
Reply to this comment
Watch as HD DVD crashes and burns
by bubblebathgirl January 15, 2008 2:32 PM PST
Firesale again? That did wonders for HD DVD last time right ... oh wait. HA!

Yeah, this is an obvious attempt to unload inventory before HD DVD goes bye-bye for good. Best Buy is already having clearance sales on the obsolete HD DVD players.

Warner Bros. has gone Blu-ray exclusive, Paramount and Universal will be following suit sometime this year.

The war is over, Blu-ray has won.
Reply to this comment
Can't the war end!!!!??
by Ksal005 January 15, 2008 7:06 PM PST
HD-DVD and Blu-Ray. I'd rather buy the cheaper one. At this point, I don't care who wins. I don't care for Sony's over-priced, over-hyped products. At this point, I'd buy whomever wins. Unfortunately, the war is still not over. Fire sale or not, the war is still on and that sux!

For those of you who think that Blu-Ray will lower their prices if HD folds, you're so wrong. Competition doesn't work that way. I doube they will raise their price but they will NOT lower it. They'd have reason to lower prices on anything.

HD and BR should just get together and combine their efforts so that the consumers can begin to buy their products.
Reply to this comment
A Solid and Brave Move
by lgans316 January 15, 2008 7:10 PM PST
I appreciate the recent price slashes by Toshiba. BDA still has 6 months to reach the maturity of HD DVD as far as specifications are concerned. Let the consumer decide on the format and not the media and the Studios. Who knows Warner may switch to HD VMD in near future and ditch Blu-ray !!!
Reply to this comment
A Wholly Irresponsible Move
by Mikeybabes January 15, 2008 8:33 PM PST
Everyone wants to see a single medium to bring forward HD adoption. Toshiba is acting like a petulant kid wanting his own way, when clearly the weight of judgment is against it. As a result we wait in limbo and even worse people are being lured by what suspiciously look like loss leading price points (I don?t see anyone else other than Toshiba doing this) into a medium that could well be dead by the end of the year.
All these people who say that HD-DVD will still win it please get a reality check. Paramount is regretting their decision and their exclusivity was based on Warner remaining impartial. That hurdle has gone. We will very soon be in a position where Blu-ray has every major film studio, and HD-DVD will have Universal and some indie-movies. Executives at Universal will soon be asking themselves some very tough questions. This is not a debate about which is the better medium, who is ripping who off; if you ain?t got the movies you are in trouble ? plain and simple.
The irresponsibility comes to play when Toshiba eventually obsoletes HD-DVD, which will realistically happen when all that is out for it are indie-movies from wannabe directors. All devices breakdown over time, and whilst your discs might last forever, you will have trouble finding a player for them. I am on my 4th or 5th DVD player by the way, and I lost track of how many VHS machines I went through.
Go and buy this HD-DVD player if you want to, the fault lies not with those that fall for it. Toshiba should know better, or perhaps they are off-loading stock / recouping development costs whilst they still can. The people that will pay will be the people left with discs that they can?t play. If you know better, don?t fall for it.
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Hang in there Toshiba
by toddnothingclever January 15, 2008 8:38 PM PST
While it seems hd-dvd is on life support, I hope Toshiba hangs on and somehow they get some studio support back. Sony has just done too much (root kits...ect) for me to feel good about them dominating hardware and content side of the movies we enjoy. If HD-DVD dies, I'll just hold out for HD downloads.
Reply to this comment
what is it with digital downloads?
by sonymaster101 January 15, 2008 10:28 PM PST
people seem to be obsessed with the idea of digitally downloading movies in hd format. the internet system in the us simply doesn't have the bandwidth required to do this. technology like this will be available in japan years before the us has it. this is because the internet speeds in japan are much much higher than in the US. And, upgrading all in the internet systems i the us would cost hundreds of billions of dollars. digital downloading won't be able to have a firm grip on the US market for another ten years. plus the fact that streamed video will always have worse quality than a streamed format. plus, even with toshiba cutting prices on players, it doesn't matter how cheap it is if there is nothing to watch on it. I chose blu when i gotmy ps3 and i made the right choice. yes, hddvd sells more players, but blu ray sells twice as many movies as hddvd. and the number of movies sold decided which side most of the companies went to.
Reply to this comment
The masses have spoken...we want Blu Ray!
by Notjub January 16, 2008 4:26 AM PST
It's very telling that HD DVD's always had lower prices both in players and media, yet Blu Ray movies have outsold HD DVD consistently.

On a side note, Toshiba's failure was to NOT RECOGNIZE the PS3s out there as Blu Ray players. I understand they did this to give themselves a chance from a PR standpoint, but they were only ignoring the problem instead of addressing it. Now it's too late.
Reply to this comment
Actually the Masses haven't spoken yet but will.
by AnthonyNYC January 16, 2008 11:12 AM PST
Sure initially lots of $499 and $399 PS3's were sold to the top of economic scale part of society, and sure maybe they each bought a few BluRay discs to test the new system, so initial sales were high.
But for the remainding 239 million people or so in USA, lower price HD-DVD is a better choice, at $149 maybe then they can save the rest to finally afford an HD TV to use it with.
Lower prices will always sell more, plain and simple, go back to economics class if you don't agree.

Free market competition is what we stand for. Let the masses decide, not the early adaptors!

Plus, HD-DVD is a cheaper disc to manufacture, so who cares if Warner doesn't sell it's movies on it, since when pornos finally become available from small independant manufactures that's when you'll see sales take off, like it did for the internet and vhs rentals.

Plus without Toshiba fighting hard, BluRay players would be much more expensive still along with new disc format.

I would have liked one format from beginning, sure, but I think Sony was Greedy to not settle with current DVD forum, and want to be in charge and not pay further royalties to Toshiba to begin with. So give it another year, and if HD-DVD players and discs still haven't surpassed bluray's then economics will have decided. It is so early in the game.

Either way I have 30 HD-DVD's to date, 300 DVD's and the Toshiba player plays both beautifully and will continue for many years. And like the -R and +R battle in the end players will read both in future as standard for the losing discs. So nothing will be obsolete, no fears people.

The Masses are common working men with familys to support on shrinking middle class wages.
Also with ression in sight, $99 HD-DVD player will be available and selling well by then.
Let's wait and see till the actual Masses have spoken. OK?
Reply to this comment
The proof is in the pudding...
by Notjub January 16, 2008 10:35 PM PST
Blu Ray outsells HD DVD consistently, despite the headstart.

You do the math.
Reply to this comment
Sometimes buying the loser can save you money
by j_a_s_p_e_r January 21, 2008 9:52 AM PST
There are many out there with laserdisk and sacd, that got them for a bargain at the end of their cycle. And they still love them. At ~$131 for an HD-A3 plus 10 movies with free shipping (from amazon), where can you lose. Even if Blu-ray wins, you win.
Reply to this comment
hd dvd anit dead
by dpacino January 21, 2008 10:49 AM PST
savehddvd.com
Reply to this comment
Nice move by Toshida........
by monkeebrain January 21, 2008 12:13 PM PST
I have a beta max player I am selling for only $5. Any takers?
Reply to this comment
Piracy may takes the roll
by jose_ams January 26, 2008 11:05 AM PST
Can I Borrow a BR movie and copy with a HD DVD Burner from a friend to view in my cheap HD DVD Player?

This could be the beginin of HD piracy, if studios only support BR, someone coud burn BR movies into HDDVD format and sell it cheaper. The demand of HDDVD players will increase and Toshiba players will survive!
Piracy is a fact, and Piracy may take the roll in the HD War.
Reply to this comment
Piracy may takes the roll
by jose_ams January 26, 2008 11:05 AM PST
Can I Borrow a BR movie and copy with a HD DVD Burner from a friend to view in my cheap HD DVD Player?

This could be the beginin of HD piracy, if studios only support BR, someone coud burn BR movies into HDDVD format and sell it cheaper. The demand of HDDVD players will increase and Toshiba players will survive!
Piracy is a fact, and Piracy may take the roll in the HD War.
Reply to this comment
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