Sony cuts second-generation Blu-ray player price to $499
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By Susanne Ault -- Video Business, 6/4/2007
JUNE 4 | Sony is cutting the price of its second-generation Blu-ray Disc player to $499, $100 less than was expected.
The BD-S300 is being delivered widely to major and specialty consumer electronics retailers. It features advanced Dolby Digital Plus audio and CD playback, options that were not included in Sony’s first-generation model, which streeted in December at $999.
The drop in price for Sony’s second-generation player is related to reductions in Blu-ray manufacturing expenses and not a response to rival manufacturer Toshiba, which cut prices on its cheapest HD DVD players by $100 to $299 last month, a Sony spokesman said.
“We don’t react to other people’s products,” the spokesman said. “This was done because of a decline in the cost of manufacturing costs.”
Sony players, and other Blu-ray stand-alone models, are running behind in sales to Toshiba's HD DVD hardware, which sold more than 100,000 units through mid-May. Through the end of April, Toshiba models were estimated to be outpacing Blu-ray stand-alones by a four-to-one ratio. However, more than 3 million Blu-ray-equipped PlayStation 3 units have sold worldwide through the end of March.
Due to such improved economies of scale, Sony also cut the price of its first-generation player to $799, effective May 25.Also, through a recent firmware update, the first-generation model now features audio technologies Dolby True HD and Dolby Digital Plus.
In Sunday’s circulars, Best Buy and Circuit City promoted both Sony’s $799 BDPS1 model and Toshiba’s $299 HD-A2 player.
“The BD format gained great momentum in the past several months, and we’re going to capitalize on that with the new model,” Chris Fawcett, VP of marketing for Sony Electronics’ Home Product Division, said in a statement. “The player gives a broader consumer segment the opportunity to experience the exceptional quality of the Blu-ray Disc format at a competitive price.”
Sony said the BD-S300 player “will be available shortly at Sony Style stores, online at the new Sony Style and at other retailers nationwide.”
