HD DVD set-top player $99 sales moves units

Toshiba HD-A2 model sells 90,000 over weekend

By Susanne Ault -- Video Business, 11/6/2007

NOV. 6 | The HD DVD format significantly pumped its installed base over the weekend, as dueling store clearances sold an estimated 90,000 Toshiba players, according to sources close to retailers.

Store sources also note that the $100 price drop on the 80GB PlayStation 3 to $499, plus the Nov. 2 bow of the $399 40GB PlayStation 3, has significantly improved the sales of the console, which has been lagging behind Xbox 360 and Nintendo’s Wii.

Hastings Entertainment reports PlayStation 3 sales over the past 30 days have doubled over the console’s average weekly sales prior to the changes.

“We’ll take double sales anytime,” said Allen Smith, Hastings senior category manager for interactive gaming. The $399 PS3 “is now the cheapest Blu-ray player in the market. There is more excitement around Blu-ray. It’s probably [because of] the promotional environment [of new products]. And that is picking things up a bit.”

That tally covers Friday to Sunday sales of Toshiba’s second-generation HD-A2 model, which Wal-Mart and Best Buy sold for about $99 on Nov. 2. That’s $200 less than Toshiba’s $299 list price and $100 off widespread retail pricing of $199.

The $99 players made up most of the 90,000 units sold, a source said.

Within three days, Toshiba corralled nearly as many sales as the best-selling stand-alone Blu-ray Disc player has sold since its launch. Sony’s dominant Blu-ray set-top, the $499 BDP-S300, has shipped about 100,000 since it bowed this summer.

In that weekend frame, the huge retail sales fattened Toshiba HD DVD penetration by at least 35%, as DisplaySearch estimates that 256,000 Toshiba set-top players have sold through July.

However, the Blu-ray format still retains the largest overall installation base, due largely to the millions of PlayStation 3 hardware sold.

In fact, the 90,000 figure for HD-A2 sales could be even higher, as it doesn’t appear to include all retailer information. The figure does span consumer activity on HD-A2s at Wal-Mart, Best Buy and Circuit City, among others.

However, the Blu-ray format still retains the largest overall installation base, due largely to the millions of PS3 hardware sold.

Best Buy also shaved $100 off Toshiba’s $299 third-generation player, the HD-A3, Friday through Sunday. At deadline, a Best Buy spokesman did not provide updated sales on the HD-A3.

Toshiba and the HD DVD Promotional Group also declined comment.