Toshiba’s HD-A2 HD-DVD player.

NOV. 6, 2007 • Wal-Mart, CircuitCity and Best Buy priced the Toshiba HD-A2 HD-DVD player at $99 during the first weekend of November, which helped pushed sales of the model past 90,000 units. At $200 off Toshiba’s list price, the weekend tally boosted Toshiba HD-DVD player penetration by 35%, according to Video Business magazine. The 90,000 figure did not include online retailers such as Amazon.com that also sold the player at $99.

Impact: The best way to counter the PS3’s Blu-ray installed base is to convince the motion picture studios that more revenue is to be had via HD-DVD players, and short-circuit studio support of the Blu-ray platform. That argument is already in play, and fire-sales such as this only accentuate the debate for motion picture executives. If more of them start favoring releases on HD-DVD, Sony will find itself out-maneuvered in HD format war.