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Print 63 comment(s) - last by Locutus465.. on Nov 20 at 4:30 PM

HD DVD players get a sales lift thanks to sub-$100 pricing

The battle in the next generation high-definition DVD format war is far from over. HD DVD and Blu-ray have been fighting it out in the market for roughly a year and neither side shows any signs of giving up the fight.

In late October, DailyTech reported that Blu-ray disc sales held a commanding lead over HD DVD for the first nine months of 2007. Blu-ray outsold HD DVD by a 2-to-1 ratio racking up sales of 2.6 million units versus 1.4 million units for HD DVD.

Since the inception of both standards, a total of 3.01 million Blu-ray discs and 1.97 million HD DVD discs have been sold.

Toshiba, the main backer for HD DVD, decided to turn the tables a bit in order to swing the sales momentum back in its direction. One by one, retailers started dropping the price of the second generation Toshiba HD-A2 HD DVD player. Wal-Mart dropped the price of the player from $299.99 to $198 in late October. Circuit City and Amazon both followed suit pricing the player at $197.99.

On November 1, DailyTech brought you news of Wal-Mart's secret in-store sale which listed the price of the HD-A2 at an unheard of $98.87. Soon after, Best Buy countered by pricing the player at $99.99. Sales of the player were so furious at BestBuy.com that the stock was depleted leaving backorders to be fulfilled with the third-generation HD-A3 at no additional charge.

It appears that Toshiba efforts to drive down the price of entry for HD DVD paid off. Video Business reports that 90,000 Toshiba HD DVD players were sold over the weekend thanks to the price drops.

For comparison, Sony has sold 100,000 of its $499 BDP-S300 set top player since its introduction during the summer.

Despite the weekend surge in HD DVD player sales, Sony can still claim the largest install base with its Blu-ray hardware. Since its introduction in November 2006, Sony had shipped over 5.51 million PlayStation 3 consoles -- each of which features a Blu-ray drive.



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But wait! There were no lines at Wal-Mart!
By AlexWade on 11/7/2007 1:12:58 PM , Rating: 1
http://www.dailytech.com/article.aspx?newsid=9512
The Blu-boys just can't stand any good news for HD DVD. In fact, all fanboys can never stand good news for the other side. HD DVD fanboys have been just as bad, sadly.

I myself bought one, even though I didn't plan on it, just because it was $98. That was a deal I couldn't pass up. Now, these people are going to play their HD DVD's and show it off to their friends and say "Look at this HD DVD I bought at Wal-Mart". The friends, in turn, see the Wal-Mart HD DVD commercial and go buy one. While they are there, they buy a few other items too. Wal-Mart sold these things at a loss just to get people to think of them as serious HD players. You got to spend money to make money. If Wal-Mart did this with Blu-Ray, the end result would be the same. The DVD Forum better be glad Wal-Mart is pushing HD DVD.




RE: But wait! There were no lines at Wal-Mart!
By TomZ on 11/7/2007 1:17:05 PM , Rating: 2
Just curious, are you the same "Alex Wade" involved in Java and Netbeans development?


By AlexWade on 11/7/2007 2:32:23 PM , Rating: 2
No. I haven't really touched Java since college -- I am focusing on PHP, ColdFusion, JavaScript, and AJAX right now -- and have never touched Netbeans. My handle is my first and middle name, most people call me Wade and you can to.


By Locutus465 on 11/7/2007 1:51:35 PM , Rating: 2
Wow... It's one thing to support and possibly evangalize one tech over another, it's quite another to start distorting reality in order to try and make it seem like no one cares about a competing product/format. Every walmart I know of was sold out very soon after 8 (sadly the one I went to sold out at 7am). Apparnetly there were some out there with a larger stock of these, and some customers were able to get them later in the day... But for the most part, they were gone... And I'm pretty sure the story would have been the same if it was a BD player (I perfer HD-DVD, but I would certainly grab a BD player priced at $99 in a heart beat).


By Spuke on 11/7/2007 2:07:52 PM , Rating: 2
quote:
show it off to their friends and say "Look at this HD DVD I bought at Wal-Mart".
I have a friend that was not interested in HD players at all until I showed him the Walmart deal. It was just too good to pass up even for him. Hell, he doesn't even have a HDTV yet.


By ChronoReverse on 11/7/2007 2:23:15 PM , Rating: 2
I ended up buying one too. I figure that even if HD-DVD dies, I'll have a nice upconverting DVD player so it's no loss. Furthermore the price of the free movies alone pretty much covers the cost of player.


RE: But wait! There were no lines at Wal-Mart!
By timmiser on 11/7/2007 9:17:22 PM , Rating: 2
The only problem with your post is that it is Toshiba's decision to put the players at $99. They sign a deal with Walmart which includes where in the store the item will be located, the promotional price, and the print and TV advertisements which is mostly paid by Toshiba. Walmart themselves have little to do with the price cut and terms of the deal. Same goes with any product you see being promoted in a walmart ad or any store ad for that matter. Sale prices, circular location, and shelf locations are all negiotiated.


By C'DaleRider on 11/8/2007 1:40:53 AM , Rating: 1
Too bad you got only part of your post correct....the rest is about 180 degrees off.

Wal-Mart, the largest single retailer in the world, usually dictates the terms of any deal with any supplier. This would include Toshiba.

Wal-Mart essentially tells a supplier what kind of item they want and at what price point. It's then up to the supplier to either produce the item at that price or get passed over for another supplier willing to sell to Wal-Mart under those terms.

And every year the supplier contracts to supply WM with XX goods, WM usually expects a price reduction.....

True, shelf space, prices, etc., are all negotiated, but it's done with Wal-Mart in the position of power, not the supplier, and it's done with Wal-Mart specifying the terms of everything, not the supplier dictating the terms.

You ought to read the two articles below.....really will give an insight as to how WM sources and negotiates with its suppliers. Now, I know both articles are over 500 words, and both are probably much longer than anything you're used to reading before losing your attention....sucks to have such short attention spans, isn't it?......but try to read and comprehend what is written in them; then you may truly understand how WM sources its goods.

http://www.fastcompany.com/magazine/102/open_snapp...

http://www.fastcompany.com/magazine/77/walmart.htm...


"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer














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