Sony still has to finish the job by reducing prices and in the meantime I think a lot of people who just don't know any better are going to keep buying HD-DVD players.
I disagree- I think Sony's success has come because it didn't succumb to pressure and drastically lower prices on its players. Penetration pricing has been proven numerous times to be a bad strategy at new product launch as it tends to have a negative signaling effect on the quality of the product. Considering that early adopters are still generally the only ones buying these products, Toshiba made a huge error in judgment trying to sell them on a "value" product, especially since the content for the product was still selling at an average of $28-30 a pop. Many buyers of the $99 A2 did so only b/c the price was right, but they didn't understand that it was not really a "value" product since the content was so darn expensive.
Sony also had greater success because BD prices were generally cheaper than HD DVDs- especially when you considered Toshiba was trying to push the HD/SD combos. I don't understand that the only way a user can buy 300 for the HD DVD is to pay $8 more than the BD price... it's stupid business.
Sony will lower prices as the
market demands it, the same way CD players took many years to come down and the same way SD DVD players took 3-4 years to come down.