Toshiba appears to be selling HD-DVD player below cost

A tear down of the new Toshiba HD-A1 HD-DVD player into its component pieces reveals that the company may be selling its high-definition optical disc player at a loss of more than $200.

Applied market researcher iSuppli has estimated the build of materials costs to be $674. Other associated costs, such as manufacturing, take the estimated total cost higher than $700. The list retail price of the HD-A1 is $499.

The research firm speculates that Toshiba is selling the HD-A1 at a loss to build market share as more expensive Blu-ray players come to market. According to iSuppli, the Blu-ray vs. HD-DVD battle will shape up differently than the Beta vs. VHS war of the 1970s and 1980s, with dual-format units likely to become available for holiday shopping.

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