Wal-Mart Stores Inc. (NYSE: WMT) will soon be selling a Blu-ray disc player for under $300, as the Magnavox model NB500MG9 will hit Wal-Mart shelves for the new low price of $298 in an effort to encourage adoption of the new high-definition format in U.S. consumer homes. That's all great, since the expensive format has not won over a huge amount of customers with its high price, even though it is the sole hi-def disc format with HD DVD's demise earlier this year.But $298 is still too expensive. Players will need to hit the $199 or $149 mark before mass adoption becomes possible. As usual, Wal-Mart is helping bring down the price of a major new consumer electronics item, and other retailers will be sure to follow suit soon. The prices of the software -- Blu-ray movies -- will also need to trend downwards. Consumers aren't going to be shelling out $30 a pop for a whole new library of movies to replace the perfectly fine DVDs sitting in their homes.
So, another round of "leading the pack" in terms of a new low price goes to Wal-Mart and its intensive pricing power over its supplier base. With Best Buy Inc. (NYSE: BBY) recently seen discounting Blu-ray movie titles to $16.99, the summer of 2008 may see the Blu-ray format gain mass acceptance among the tight-pocketed American consumer. Still -- who will be the first to have a $199 Blu-ray player on shelves?
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
