Toshiba broke new ground a couple months ago when they introduced an HD DVD player for $500. Well, the less expensive one retails for $500. Everyone was surprised by the low price, because new technology like that usually comes with a high price tag.

I, and other people too, thought that Toshiba was doing this to really get their foot in the door in the next-gen HD disc war. It seems to be working too, because everybody is complaining about the high price of the Samsung BD player ($1000) and the prices of the upcoming Sony ($1000), Panasonic ($1300), Pioneer ($1500), Philips, and Sharp players (also to be around that price).

It turns out, at least according to iSuppli, that Toshiba is selling these HD DVD players at a $200 loss. This is a relatively small investment for Toshiba, and it seems to be paying off very well. Toshiba has set $500 as the benchmark point of entry into the next-gen disc race. All new BD players are being compared against that price, and not favourably. It’s a very shrewd move on Toshiba’s part, and may turn out to be a large contributor to the war between HD DVD and BD.

Toshiba losing on every HD DVD player sold