Of course nobody here knows the answer to that. I wouldn't be surprised if there were even making money still. Who really knows how much it costs to make one of these things. With normal DVD players selling for $30 it's not out of the question to think an HD DVD player selling at $100 could make a profit.
What surprises me is that this sale is for the A2, not the A3. As best I can tell the A3 really doesn't offer anything significant over the A2. So my guess is that it's really just a cost-reduced version of the A2 with maybe a little tweaking. I'd guess that the A3 is significantly cheaper than the A2 for Toshiba to build, thus higher profit than the A2 if selling for the same price. But it's the A2 that's on sale. Maybe they just haven't ramped up A3 production enough to cover he expected demand.
Check Toshiba for specs. There are a number of improvements in the A3 vs A2. I Suspect that Walmart is selling these as a special and to eliminate inventory.