Sony has recently cut $100 off its BDP-S300 Blu-ray DVD player, which has fallen to an unprecedented price of $499, about half of what it cost six months ago at its introduction. The price cut comes in response to growing demand for new technology and lower production costs, according to Sony. However, Sony's rival Toshiba is asking less than $300 for its next generation HD DVD player.
"Both companies have struggled to win customers for their respective systems as the battle of the formats is causing confusion, according to analysts."
"They believe customers will wait to see which one the market will settle for in an echo of the 1980s Betamax-VHS videotape battle."
The BD-HD DVD war has created a great divide in both the electronics and film industries. Samsung, Dell, and Apple have sided with Sony, whereas NEC, Sanyo, and others have chosen HD DVD. Movie titles from Universal will be in HD DVD format, but those from Disney and 20th Century Fox will be Blu-ray. Although Sony and Toshiba's technologies are incompatible, earlier in the year LG announced plans to "reconcile" the two technologies by building the first DVD player capable of playing both formats.