Kmart picks HD DVD over Blu-ray Disc, citing price as the main reason

While the Blu-ray Disc Association is wining and dining members of the media, HD DVD is going after the retailers.

It was uncovered last week that Wal-Mart had plans to stock Toshiba’s 1080i-capable HD-A2 HD DVD player in its stores for $198. The move represented a major break-through for the high-definition format into the daily path of mainstream consumers.

Toshiba HD-A2 HD DVD Player

Wal-Mart wasn’t the only retailer with the idea of stocking an affordable entry-level high-definition movie player. Just days after Wal-Mart’s reveal, big box electronics retailer Circuit City priced the HD-A2 on its website for $197.99. Amazon.com quickly followed suit, also listing the unit at just below $198.

Having the most-affordable HD player on the market is certainly a powerful edge when it comes to consumer preferences, but the HD DVD camp is trying to go a step further by being the only name in the game. Exclusive movie studios, such as Paramount and DreamWorks, are essential in swaying the consumer, but so is retailer exclusivity.

Jodi Sally, VP of marketing at Toshiba America Consumer Products, told Home Media Magazine that Kmart would exclusively stock Toshiba HD DVD players in retail stores due to their lower price. Reports from the consumer level confirm the news, with the only high-definition standalone movie players for sale in the electronics department being those from Toshiba.

The Blu-ray Disc camp still had one foot in the door of Kmart, however, as the retailer stocks and sells the PlayStation 3. Kmart also sells the HD DVD add-on for the Xbox 360.

Toshiba denies having much to do with the recent price avalanche of entry-level HD DVD player, instead saying that the price drops on HD DVD hardware came from the retailers’ side.

“There was no official move on our MSRP, but I’m happy to see the strong sales momentum on our players,” Sally said. “We experienced a great lift in player sales when Transformers (Paramount) was released, and the strong momentum continues.”

Nevertheless, Toshiba is fully aware of the impact that price has on consumer buying habits. When the HD-A2 dropped to $299 during summer, Sally said, “We know that price is a powerful driver for consumers to adopt new technology.”

May the price wars begin.