Or maybe they know that more players = more movie sales.
Vurbano,
Look whatever the reason for the drop in price, this is NOT going to save them, WHY you ask.
The answer is simple no other Electronic companies are going to build their own HD-DVD players.
The VHS/Beta war was won by VHS for several reasons; 1)More brands of VHS machines at various price points with different features taking up VASTLY more space on the Stores shelves 2) More Storage capacity of VHS.
Sony learned their lesson which was they needed as much industry support as possible to cement the Standard platform.
With 90 percent of the soon to be released Movie Content available on Blu-Ray and only 20 percent for HD-DVD, coupled with decreased presence of HD-DVD on the store shelves, coupled with losing money on both the Hardware side and Software side of the HD-DVD equation, they are on borrowed time. Short of some "rabbit out of the hat HD-DVD miracle" HD-DVD is fighting a losing battle that will bleed more and more money from Toshiba until they have no choice but to strike a deal with the Blu-Ray consortium to end HD-DVD production of Software and Hardware in return for marketing consideration or other such monetary settlement.
I'd hazard a guess that Toshiba has or is already considering such a move, all the while continuing to try to smooth the waters to current HD-DVD owners and HD-DVD supporters.
If either Paramount or Universal go exclusive BD or even Neutral in the next month or two then HD-DVD is DOA, regardless of the fervor of the HD-DVD player owners.
John