By James Wells

SYDNEY: In response to rapid price erosion by the HD DVD format in the next generation optical disc war, Sony today announced it will drop the price of its entry level Blu-ray Disc player from $999 to $799 after just two weeks on the market.

In a press release distributed this afternoon, Sony predicts the “market [is] set to grow as momentum builds for the format” and quoted GfK statistics that 85.2 per cent of high definition films sold between 1 January and 14 October this year were Blu-ray Discs.

According to the statement, from Thursday, the BDP-S300 player will retail for $799 and the higher-end BDP-S500 for $1,099, which was originally priced at $1,299.

“We see this new pricing structure as a positive step for growing the Blu-ray Disc market in Australia, enabling more Australians to have access to the superior picture and sound quality the format offers,” said Sony Australia assistant product manager – home video, Andrew Smith.

“As more and more Blu-ray Disc titles are released – with well over 200 expected in market by Christmas – Blu-ray will really cement itself as the format of the future,” Smith said.

In mid-June, Sony launched its first Blu-ray player, the BDP-SE1 at an RRP of $1,399 and at the time promised it would follow up this product with the mainstream BDP-S300 in mid-September.

Earlier this month, Sony announced that the BDP-S300 would be released at an RRP of $999 and would be complemented by the BDP-S500 at $1,299.