This does sound like BS to me. But if it is true (ignoring the "killing off" of BluRay), then BluRay could be in for some stiff competition.
From what Ive read, this has always been a significant difference between the BluRay / HDDVD camps. Toshiba doesn't mind to FLOOD to market with low-cost HD-DVD players - in fact they probably see it as essential. Sony on the other hand, wants to keep prices of BluRay players higher - to make a reasonable margin off them.
If the price of stand-alone HD-DVD drives comes down to $199US, and is out (in quantity) for Xmas - things get real interesting indeed. Price of stand-alone drives for the 360 should come down, better chance of having an embedded unit. And it puts more price pressure on the PS3 - as all of sudden, the "real" value of a BluRay player is much less than Sony would like it to be.
(it also makes a mockery of selling either stand alone device for $999US less than 12 months before).
Gesta Non Verba
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