Toshiba to keep HD DVD players at $299

Promotional lower price helped increase sales

By Jennifer Netherby -- Video Business, 6/28/2007

JUNE 28 | Toshiba is sticking with the $299 price-point for its bottom-line HD DVD player after seeing a sales jolt when it introduced the lower price in May as part of a limited-time offer.

The company said during a press event in New York Thursday that promotional prices introduced in May on its two lower-priced players would go into permanent effect July 1.

The entry-level HD-A2 player will stay at $299 and the HD-A20 at $399. The top-line HD-XA2 remains $799.

Toshiba sold 100,000 set-top players in their first year on the market but has sold an additional 50,000 players since the company began lowering prices in April.

Speaking for the HD DVD Promotional Group, Universal Studios Home Entertainment executive VP of HD strategic marketing Ken Graffeo said they’ve found that price is the biggest motivating factor for consumers when it comes to buying a player.