I can't say I didn't see this coming.
Sony has dropped the price for its new BDP-S300 Blu-Ray disc player from $599 to $499. That's half of what the first Sony Blu-Ray cost just six months ago.
And I think it means we'll see a cut in PS3 units, which come with a Blu-Ray player built-in, before summer is done.
This is all about competition of course.
Sony is in a Beta vs. VHS war with HD-DVD, another form of next-generation high definition DVD playback, pioneered by Toshiba. HD-DVD players are now selling for less than $300, though the sub-300 model is not capable of producing the highest quality HDTV picture (1080P), like Blu-Ray is.
Sony officially says the Blu-Ray price cut is due to falling production costs and growing demand.
Neither format is selling well right now but Sony can ill afford for Blu Ray to lose as it would stagnate sales of the PS3, which has yet to take off. So far Hollywood studios lean more towards Blu-Ray but I think both formats could thrive.
There are some new combo players that play HD-DVD and Blu-Ray but they're going for $800 or more.
This could be an important battle for consumers to watch with HDTV set prices falling by the month.