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@ Altimus

I think you have to look at the overall picture. Studios may drop HD DVD based on the sheer numbers of PS3s being sold, which makes it look like HD DVD is getting slaughtered. However, if you look at standalone players, then HD DVD is winning. Plus, this $100 player deal is getting the chance for more consumers to buy their product and make cash ... do you really think studios aren't going to take notice? It boils down to carrots being tossed left and right to get folks to upgrade to the HD experience. You do have to realize it's a win-win for the studios too. Not only with more consumers have a chance to buy said product, but you win because of the nonexistent costs to make HD DVD movies. I don't have stats, but I can bet you it costs next to nada for studios/distributors to make movies for HD mediums than a regular DVD.

This move by Toshiba is really a strong move to win this war early. If you don't think offering what amounts to free players isn't working, you are gravely mistaken.

And don't forget one thing - these average consumers will start considering buying HD first and DVD second now. Yeah, some won't immediately adopt the higher prices, but this is only the beginning ...

Well, I got the $98 A2 on Friday morning and have watched several movies over the weekend.  Here are my early impressions:

First, about my setup.  I've got a 60" Sony SXRD TV, a Sony STR-895 receiver and Cambridge Soundworks speakers.  So I use HDMI for video to the TV and optical to the receiver.  Receiver only does 5.1.

So I've watched transformers, happy feet, evan almighty, knocked up, and parts of planet earth.

All I can say so far is "WOW".  The HD picture I get from the player is so much clearer than the picture I get from HD cable.  It definitely gives that real movie theatre experience.

The sound (DTS 5.1) also blowns me away.  Not sure I'll ever care about 7.1 or lossless audio as this sounded amazing.

Finally, I tried a couple of regular DVDs and did notice an improvment in picture via the upscaling on this player.

In conclusion, I couldn't be happier with this purchase.  Now I'll just wait till I can get a blu-ray player for under $150.