Toshiba launches HD-DVD fire sale

[Bligmerk]

Toshiba can't really be faulted for doing this. They have quite a bit of hardware already manufactured, sitting in warehouses. They are losing money on every unit sold but they lose even more if they don't sell them. Some people say the general consumer doesn't know what a fire sale is anymore. This argument doesn't hold water since a high-def movie player consumer is not a general consumer. But the Toshiba players are being played up as DVD upscaler players plus playing high-def movies so some buyers may only be looking at that and not even aware of the recent news. Still, there was kind of clearance sale during the holidays and Blu-ray players still sold more than HD-DVD, despite being quite a bit more expensive. The evidence is the general consumer is learning quickly about what is going on, especially since it has been on practically every news source there is including entertainment magazines. This does look like an act of desperation and it isn't going to work but what else are they going to do?

Toshiba Launches HD DVD Fire Sale
The company is slashing prices and launching a marketing campaign -- but is it too little, too late?
hd dvd fire sale

Toshiba is launching an initiative to save and boost its flailing format.

January 14, 2008 | by Rachel Cericola

Looks like Toshiba doesn’t want to go down without a fight—or at least with a warehouse full of HD DVD hardware. In a last-ditch effort to save its high-def format, the manufacturer has launched a players-at-cheap-prices initiative.

The company just announced a marketing campaign that will include advertising HD DVD benefits and cheap hardware prices.

The entry model HD-A3 will run $150, the HD-A30 will cost $200, and the higher end HD-A35 will be priced at $300. The prices are good, but not exactly Walmart’s $99 sale that triggered the high-def holiday season.

“While price is one of the consideration elements for the early adopter, it is a deal-breaker for the mainstream consumer,” said Yoshi Uchiyama, Group Vice President Digital A/V Group. “Consumer sales this holiday season have proven that the consumer awareness of the HD DVD format has been elevated and pricing is the most critical determinant in consumer’s purchase decision of the next generation HD DVD technology. The value HD DVD provides to the consumer simply cannot be ignored.”

That makes sense, but will consumers buy into a potentially dying format? Will the amount of high-def movies reign over cheaper player prices? Or do most not even know the format war has been waging?

We shall see when the new pricing kicks off on January 13.
http://www.electronichouse.com/article/toshiba_launches_hd_dvd_fire_sale/C174

[Beodude123]

People that are smart would be buying those players, getting a ton of HD DVDs for super cheap, and enjoy HD media at prices less than what all of us have paid in the past.

Thankfully, I'm pretty dumb, so I won't be getting in on that action. I've got my Blu-ray playing PS3 to keep me warm at night... LoL

[Dorfdad]

problem is PEOPLE are not smart.. They will buy these in droves!! than 2 months from now when they cant see any new releases coming out they will start scratching their heads.... By than Toshiba will have moved on and release there Blu-Ray players...

Consumers will be screwed..

[PS3JT]

problem is PEOPLE are not smart.. They will buy these in droves!! than 2 months from now when they cant see any new releases coming out they will start scratching their heads.... By than Toshiba will have moved on and release there Blu-Ray players...

Consumers will be screwed..

I was going to say the same thing. Unless employees of the stores inform people of the latest news in the format war, average consumers are going to see HD at a low price and jump all over that. I doubt an employee is going to educate the consumer of this and they will buy the HD DVD. I still think this is too little too late. I think its more that Toshiba doesnt want to get stuck with an inventory full of HD DVD players and movies. What happens when they sell all there players and movies to people who dont know the situation? These people will be expecting new movies to come out. And when they dont come out, they wont be too happy.

[mrnagy88]

I was going to say the same thing. Unless employees of the stores inform people of the latest news in the format war, average consumers are going to see HD at a low price and jump all over that. I doubt an employee is going to educate the consumer of this and they will buy the HD DVD. I still think this is too little too late. I think its more that Toshiba doesnt want to get stuck with an inventory full of HD DVD players and movies. What happens when they sell all there players and movies to people who dont know the situation? These people will be expecting new movies to come out. And when they dont come out, they wont be too happy.

Consumers were not informed when the players were selling for $99, so I doubt they will inform them if the prices are just $150... but we'll see, there is no way that they are making much profit at those prices...

[Jabjabs]

Clearing out old stock while they still can maybe? Better to move a million units at cost then to have the hanging around in ware houses.

[mertle]

Consumers were not informed when the players were selling for $99, so I doubt they will inform them if the prices are just $150... but we'll see, there is no way that they are making much profit at those prices...

I think the oposite you must basically be a total virtual non entity in watching television to have not heared or at least seen a news article about toshiba HD-DVD problem since warner shift its been on everywhere not just tech shows or mags.

Before that it had not really hit news only in tech shows/mags and it was easiler for them to get away with sale/fire sale prices.

Now its different kettle of fish people not going to throw $150 when you can get good upscallers propably cheaper because thats all its good for now.

Toshiba is too late they will end up just destroying them now.

What find strange all of a sudden they admitting they have stacks of warehouses full yet not to many moons they was giving the impression they were flying of the shelves.

[Teslatrooper]

Clearing out old stock while they still can maybe? Better to move a million units at cost then to have the hanging around in ware houses.

You are correct sir. Warner moving to Blu was the beginning of the end for HDDVD. Toshiba's firesale move is what we said in spanish "manotazo de ahogado". Toshiba is cashing in their chips and getting out while they can. Go Blu Ray!!! :)

[daevv]

They have to recoup some of the lost money given to Paramount but those prices are not very good. A real fire sale which I would jump in for would be $49 players and $10 HDDVD...They would move product then.

[sonyfan6]

Clearing out old stock while they still can maybe? Better to move a million units at cost then to have the hanging around in ware houses.

They are actually selling at a loss. However, every 170 dollars they get for one in the warehouse, is 170 less that they lose versus throwing the thing in the dumpster.

[gerrylum]

They're just throwing away good money after bad.

[Dark Octave]

http://www.thaiwreckdiver.com/images/kcruiserwreckx.jpg

Now we just wait for the HD-DVD infomercials to start airing at 3am.

[Baki]

If only they'd have a firesale with Blu-Rays. I'd jump on that.

[hisame]

Humm I am supporting the stock clearence idea.
Toshiba sure is quick on retrive.

[Jap Attack]

I pretty sure Toshiba knows there format is dead. They just want to make as much money as possible before it's compeletly abandoned.

[maniccow]

why would people who are smart be buying them "oh a player to play 7free HD DVD, Umm now what" sound pretty dumb to me

[Bansh88]

Word is getting out that HD is dying.

[chartwel]

people can buy up as many players as they want, movie sales is where its at and blu-ray will continue to stomp them.

its over.

[Sederior]

This is how Toshiba plans to benefit the consumer, slash their hardware price to put movement in sales to make it look like they're on the rebound?

This may be like JVC who waived all future VHS royalties Killing Beta-Max. They won the format, but they lost billions that they would've otherwise made from maintaining their licensing costs.

[grcswoosh]

I hate the smell of desperation and this reeks of it. Can't blame them though, some money is better than no money, the stuff was already made.

[Lefein]

HD-DVD, discover the look and sound of red ink.

[mcav]

Well it is our responsibility to tell as many people as possible that Toshiba are selling a dead product, and it will need replaced inside 6 months.

[Morganator]

If people are smart, they'll see this as an act of desperation and will spread the news about HD-DVD being on its death bed.

[AFSOCOM]

HD-DVD going out of business sale! Buy Buy Buy!

[se7enthsign]

An act of desperation...or concession?

Sounds like the Toshiba Blu-Ray player is just around the corner. Even if HD-DVD dies, if they are selling them at close to the price of a good DVD player, it's still an ok deal. At the end of the day, they are doing this more to get rid of stock than to get back in the race. I think it's over.

[mcav]

If people are smart, they'll see this as an act of desperation and will spread the news about HD-DVD being on its death bed.

The first 4 word of your post is the problem.

A person is smart. A person can figure this all out. A person can tell that this is a stock clearance and nothing more.

The majority of people in the world are a stupid, paranoid, scared, insecure bunch of people who believe what the box, papers, soaps, rumours, masses, majority, flashy lights tell them to believe.

[BrandonCGS]

Lol, one last attempt to save themselves.

[hisame]

It reminds me when BetaMax go down, Sony did a sale for their player too.
My friend bought 2 players back then.
And sold them about 5 years ago for over triple the price he bought it for.

[oneJ]

i wuldnt mind buying one if that happens here in australia

i dont think ill be able to watch titles like, shaun of the dead and hot fuzz in HD for a long time

[Evoking1230]

so this is what it comes to....its been a good run HD-DVD :(

(i have an HD DVD player :()

[JoNJoN]

If they start selling the HD-XA2 for $200 then I will be definitely getting one. I can finally stop using that stupid 360 add-on. I got plenty of HD-DVD movies already and if the format really is going to die then HD-DVDs are going to be had for super cheap. I could also use it as my upscaler and not put any unnecessary wear and tear on my PS3.

[hockeydude30]

Heck I might go pick one up but I just want this stupid war to be over with

[mickice]

More like "Going out of bussiness sale!" Hahahaha.

[EMAGDNIM]

Woot! I'm glad I waited to get a new HD DVD player for my HT. I was going to get a XA2 but I'll settle for a cheaper A30 :)