This could definitely turn the tide.
http://www.bloggingstocks.com/2007/04/20/wal-mart-set-to-sell-299-hd-dvd-player/
Wal-Mart set to sell $299 HD-DVD player
Posted Apr 20th 2007 2:54PM by Brian White
Filed under: Products and services, Launches, Wal-Mart (WMT)
The rage in consumer electronics these days -- past the flat-panel TV -- is the next-generation DVD player. Of course, there are two incompatible formats vying for the customer's attention (and wallet or purse). Those two formats, Blu-Ray and HD-DVD, have been seen mostly at premium prices thus far, with players recently selling for as high as $999 and $599. In fact, some folks reported buying Sony's PlayStation 3 gaming console specifically to use the Blu-Ray next-generation DVD player inside. The PS3 was actually the cheapest way to get a Blu-Ray player.
Enter Wal-Mart (NYSE: WMT). The retailer that loves to set the bar low enough on prices to squeeze out as many competitors as possible is reportedly going to introduce a $299 HD-DVD player after sending quite a pinch of its money to a Chinese supplier to get to that price point at retail. The deal for two million HD-DVD players with China's Great Wall Corporation will bring the next-generation DVD player down to the level where it may start selling. Right now, most consumers are content with regular DVD and see no reason to lay down a grand for what can be perceived as a minor step forward in picture quality (it really isn't, but that's the perception).
In a retailer where you can find disposable $29 DVD players now, will Wal-Mart lead the charge to commoditize the HD-DVD format this early in its lifetime? Surely -- it does this all the time with certain products in the consumer electronics category, bringing other retailers with it in the process. Circuit City (NYSE: CC) and Best Buy (NYSE: BBY), for example, have to match the pricing on those flat-panel TVs Wal-Mart sells or possibly lose sales. That's the Wal-Mart effect at work. These new HD-DVD players are expected sometime in late 2007 or early 2008. Other consumer electronics retailers, watch out.
