Join Date: Jan 2007
Location: Ottawa, Ontario, Canada
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The price drop does not surprise me, in fact the pricing strategy for both HD and BD has gone pretty much as any Business 101 course would dictate. In the stand alone devices, Toshiba is up against several players, so their strategy had to be 1st to market, and penetration pricing, so that they can establish a solid install base before BD hit the market. And so far, their strategy appears to have been working.
On the BD side, the only player on the market for any reasonable length of time, at least in Canada has been the Samsung player. As the BD players have to compete with each other as well as the Toshiba HD. Samsung's strategy was one of skimming, take as much profit as they can, while the rest of the BD camp try's to enter the market, Now that Sony, Pioneer and Panasonic are starting to show up in sufficient numbers on the market, Samsung can start to lower their prices. And I suspect the rest will follow suit shortly. Especially as they too start to announce G2 products for 2007.
I suspect that the price gap between BD and HD will quickly close as 2007 progresses, We will see entry level pricing and high end units from both sides.