DigiTimes has reported that Taiwan's optical drive manufacturers think that a $500 entry level HD DVD player may be available in the second half of 2007.
In view of Toshiba's recent launch of an inexpensive HD DVD player with a retail price of US$599, Taiwan optical disc drive makers think an entry-level HD DVD player priced at up to US$500 may be available in the second half of 2007.

The increasing upgrade in resolution of large-size LCD TVs and PDP (plasma display panel) TVs to full HD (high definition), 1,920x1,080, will boost demand for Blu-ray Disc (BD) and HD DVD players/recorders, the sources indicated. However, the currently available BD and HD DVD drives are very or quite expensive and the critical price level at which demand will begin to take off is estimated to be US$500 based on the development history for DVD drives, the sources pointed out.
Apparently Taiwan's manufacturers haven't checked the price of Toshiba's second generation HD DVD player, the HD-A2, as you can already buy it for less than $400. If you'd like to read more, head on over to DigiTimes.