Here's an interesting bit of news. According to an article at Reg Hardware, Toshiba's $499 HD DVD player costs over $700 to make.
Toshiba is subsidising its HD-A1 HD DVD player by at least $175 in a bid to buy the next-generation optical disc format success. So claims market watcher iSuppli, which took the machine to bits and totted up the cost of all the parts.
Available in the US, the HD-A1 is priced at $499. iSuppli's assessment of the cost of the players' components puts the product's bill of materials at $674 - and that's before the cost of assembly, packaging, peripherals, distribution, advertising, software development and so on. Oh, and that $499 is the retail price - Toshiba will be charging resellers even less for the player.
So why is Toshiba willing to lose this much when Blu-ray players are going for $1000? Reg Hardware speculates that this is due to Sony's PS3, which will ship with a Blu-ray drive. If you'd like to read more, the entire article can be found here.
