28 January 2008

Market tipping in high definition DVDs

This article over at CNET shows just how quickly market tipping can occur in a standards rivalry. As I blogged earlier, Warner's announcement to back Blu-Ray was (apparently) the defining moment. In response, Toshiba has cut the prices of stand-alone HD-DVD players; this weekend's advertisement at Best Buy was offering a "buy one, get one free" special on HD-DVD movies. This is either an inventory clearance effort or it is an attempt to change the market dynamics. I suspect the former is true.

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