The player is most likely a Blu Ray player, as there has been some mixup with the translation. Besides TDK, the company manufacturing these players, is a Blu Ray supporter. Check the update on the URL below.
http://www.engadget.com/2007/04/20/the-wal-mart-299-hd-dvd-player-on-the-way/
Also a $299 HD DVD player around the end of 2007/beginning of 2008 wouldn't really be anyhow spectacular, as for example Amazon.com is selling the Toshiba HD-A2 for $330 already, so by the end of the year the price is bound to be lower and new models should be also out.