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January 15, 2008

Toshiba Cuts HD Player Prices in Blu-Ray Fight

By Raju Shanbhag, TMCnet Contributing Editor

Consumer electronics maker Toshiba (News - Alert) Corp. has announced that the company is slashing prices of its HD DVD format players by between 40 to 50 percent as major Hollywood studios move to embrace Sony Corp's (6758.T) Blu-Ray format high definition DVDs. The company has reportedly cut prices to boost market adoption of its next-generation DVD players by mainstream consumers.



 
Toshiba's players will now start as low as $149 going up to $399 for the top-of-range player.
 
Apart from the price cuts, the company is trying to improve its marketing initiatives including joint advertising campaigns with studios and extended pricing strategies. Also, there are some new offers for customers which include five HD DVD titles for free with any of its HD DVD player.
 
According to a report in Reuters, Toshiba executive Yoshi Uchiyama in a statement, “While price is one of the consideration elements for the early adopter, it is a deal-breaker for the mainstream consumer.”
 
The company has so far secured agreements with studios including Universal Home Video, Viacom Inc's (VIAb.N) Paramount Pictures (News - Alert) and DreamWorks Animation SKG. But the battle in the next generation DVD format is clearly with the Blu-Ray supporters, at least at the moment as major studios like Sony have started going for the Blu-Ray format. The Blu-Ray format now has support from News Corp's 20th Century Fox, Walt Disney Co and Lions Gate Entertainment Corp.
 
Recently, when Warner Bothers Studio decided to support the Blu-Ray format exclusively, the market tilted definitely in favor of the Blu-Ray. Earlier, the company supported both the formats before and analysts predict that the next generation DVD war has confused consumers and delayed the development of a multibillion-dollar market, and Warner did not want to delay this any further.
 
Even the gaming console arena, Blu-Ray is clearly winning the battle. Sony's PlayStation 3 video game system can play Blu-Ray movies and Microsoft (News - Alert) has recently declared that it could consider supporting Blu-Ray technology should consumers want it.
 
Raju Shanbhag is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page
 
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