PriceSCAN Blog

Back in March I noted that introductory-level Blu-ray players were selling at a substantial premium to similar HD-DVD models (“Blu-ray May Avoid Betamax’s Fate…Even If The PS3 Isn’t So Lucky”). I argued then that this could be related to reports of Blu-ray sales far outstripping HD-DVD. Now, with Toshiba’s previous intro unit, the HD-A1, now phasing out in favor of the HD-A2, we’re seeing a repeat of the sharp discounting the A1 experienced. Back in October this model went for at least $500; Toshiba recently reduced the retail price to $399, but vendors on PriceSCAN.com are already listing the unit below $300, a stunning 25% further discount. The A2 still does not provide full 1080p output, however. For this, you’ll need at least the HD-A20, which has also seen a sharp reduction in price, from at least $500 in late March to as little as just under $380 today.

Time Period: 10/2/2006 through 5/28/2007
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

To be sure, Blu-ray players have seen significant discounting as well – the entry level Samsung BD-P1000, had dropped from $1000 at its introduction about a year ago to $450 when I wrote about it in March. It’s slipped slightly since then, offered for just below $430, still significantly more than the cheapest HD-DVD player (and it can output 1080p). Of course you can also get a Blu-ray player through the purchase of a PS3 game system for about $599, and Playstation sales have surely helped to catalyze the Sony products market penetration. Either way, it appears a significant segment of early adapters are willing to pay up for Blu-ray.
What could change this? One word: content, and Toshiba is getting a little help here from Warner Home Video and. the Wachowski brothers. With the Matrix Trilogy in HD-DVD, Toshiba may garner the ultimate proof-of-concept release. Now time will tell if the combination of this kind of eye-popping demo and sharp price cut will get consumers to plunge into the HD-DVD world, or if they’ll choose to take the “Blu” pill, as it were.