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Toshiba debuts HD player price cut campaign

Following the negative press coverage the HD DVD format received at the CES in the wake of Warner's Blu-ray defection, Toshiba says it will debut a new marketing campaign in an effort to attract cash-conscious consumers. Major initiatives, including joint advertising campaigns with studios and extended pricing strategies are beginning this month.

Toshiba's new pricing strategy for the HD DVD players include the availability of the HD-A3 at $149.99, the HD-A30, with 1080p output, $199.99, and the high-end HD-A35 (pictured), $299.99. Pricing was effective on Sunday.

Online retailer is already offering the HD-A3 model for just under $140 and the HD-A30 model for a little under $180. Reports point to other retailers also dropping the prices of their HD DVD hardware, with the likes of Tiger Direct and Costco selling the HD-A3 for under $130.

"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 consumers' purchase decision of the next generation HD DVD technology. The value HD DVD provides to the consumer simply cannot be ignored."

Toshiba also plans to carry out "an extended advertising campaign in an effort to enhance consumer awareness of the benefits of HD DVD and drive sales to retail among potential consumers." Advertising strategies will include television, print and online media channels.

Toshiba will also work with its dealers and studio partners on joint marketing and promotional initiatives to promote HD DVD. Current promotions include "The Perfect HD Offer" - a mail-in offer allowing consumers to select five HD DVD titles for free from a selection of 15 with the purchase of any Toshiba HD DVD player.

Story filed 14.01.08

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