More Price Drops in Store for High-Definition Players

As the format war wages on, it will wage on with cheaper players.

According to Home Media Magazine, a new study reveals that the price drops for HD DVD and Blu-Ray players will likely continue through the year 2011. The study, conducted by Understanding & Solutions, reveals that the prices for high-def players will be below $300, consistently, by next year, and that they will drop below $100 by 2011.

"Blu-ray and HD DVD player prices have been falling since the summer, culminating in Toshiba's loss leading sub-$100 HD DVD player," said Jeremy Wills, consultant at Understanding & Solutions. "Price reductions in the U.S.A. have continued into December, with Blu-ray players dropping below $300 for the first time, and HD DVD players below $200."

"As demand grows and manufacturing volumes build, we're going to see the costs of releasing on two different formats really start to bite. There may be surprises just around the corner, and we could see a lot more format clarity in 2008," Wills also said.

The study also suggested that 34% of American homes will have an HDTV by year's end and that, by 2011, it will be up to 90%.