As I just wrote on this week, HD DVD players hit a new price low when Wal-Mart Stores, Inc. (NYSE: WMT), Amazon.com (NASDAQ: AMZN) and others dropped the price of an older HD DVD player to right under $200 in perfect timing for holiday blowout sales. In the span of just a few days, that price has been cut 50%. Want to get into HD DVD? The price of retail admission now is just $99. Mass market purchase adoption now has clearance to take off.
In Wal-Mart's secret holiday shopping site that was unveiled yesterday, the Toshiba HD DVD unit is featured for $99, although it's not available in stores (just online). My educated guess is that this is a one-time fire sale to clear inventory of an old model, but it could usher in a new low price range for the HD DVD format in the wake of extremely lukewarm customer acceptance.
To be blunt, many just don't see the advantages in a player costing $250 to $500, even with hi-def and all that. At $99 or even $150, things change. Call it the power of the mass-market price model for consumer electronics.
Best Buy, Inc. (NYSE: BBY) has jumped into the fray as well with the same $99 price on the same Toshiba HD DVD model, something I hinted at yesterday. With the largest consumer electronics retailer chiming in here, this confirms it: either Toshiba reduced the sell-through price to its distributors (retailers) to make room for newer models or the retailers want to get the hardware into the hands of consumers to spur software sales.
HD DVD movies range from $25 to $30 generally, which is a much nicer cushion than standard DVD prices of $10 to $18. Sometimes loss leaders are the way to go, just like that nearly-free razor that requires $8 razor blades to function.
Wal-Mart, Best Buy chop Toshiba HD DVD player prices by 50%, again
Posted Nov 2nd 2007 12:25PM by Brian White
Filed under: Products and services, Wal-Mart (WMT), Best Buy (BBY)
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Reader Comments (Page 1 of 1)
11-02-2007 @ 1:20PM
rksinc said...
Once again, you are representative of how DUMB America is becoming.
If a price is slashed 100%, that means it is FREE.
A price cut from $200 to $99 is not a cut of 100%.
11-02-2007 @ 7:02PM
nerfjames said...
Bad math and inaccurate. WM's sale of the A2 is ONLY available in stores, NOT ONLINE.
I discourage you from future blogging.
11-03-2007 @ 3:00PM
Tracy said...
I have to agree with the two previous posts . This blogger has no idea what he is talking about. It was available in the stores only and it wasn't 100% marked down. And although "Brian" seems to think he is educated on this electronic market, he should be taken off the column. Reguardless of whether it was a "last year model" or not the consumers came in and bought it. Congrats to Wal-Mart for starting the price slashing early this year!
11-03-2007 @ 3:30PM
roudy11z said...
I don't see where Brian said 100% off. I do see 50% off. Did I miss something??
11-04-2007 @ 7:48PM
justme said...
agree with both comments about "brian" making stupid errors in his/her blog about 100% price cut and online sale only when in fact it's an indoor sale "while supplies last" for roudy11z the headline clearly states the 100% price cut "Wal-Mart, Best Buy chop Toshiba HD DVD player prices by 100%, again"
blogging stocks should not be allowed to be a financial news contributor because there are many errors and unqualified people trying to create news headlines. financial information should only be facts not "i think this is the right information" this site should be shut down and reported to the SEC.
11-04-2007 @ 9:36PM
roudy11z said...
I probably am missing something but Brian's blog headline at top says 50% off on this page. I misunderstood if it is in fact elsewhere in their own ads. Sorry about that.
11-04-2007 @ 9:42PM
roudy11z said...
Another point to ponder is that these blog writers overall do a fair job especially Brian White. Some of them do appear to get a little bias at times but it makes for good reading. We must continue to have our minds jogged at times if we are to survive even when it makes us angry, in my opinion.
11-16-2007 @ 2:20PM
kevin said...
i have a walmart black friday ad he he he