JUNE 4, 2007 • Sony cut $100 off the price of its BDP-S300 Blu-ray player to $499. Growing demand for HD technology and falling production costs were cited as the reason for the price reduction. Toshiba’s competing HD-DVD player retails for less than $300. Most Blu-ray discs are played on PlayStation 3s that retails for $599.

Impact: The PS3 packs enough technology to make the console an excellent value for those consumers on the cutting edge. Yet marketing a dedicated Blu-ray player for $100 less than the PlayStation 3 will cause home theater consumers who don’t consider themselves gamers to pause. Sales of the PS3 may take a near-term dip as a result.