Toshiba massively subsidising HD DVD

According to this Reg Hardware story, industry snoops iSuppli took apart a Toshiba HD DVD player and put it back together again, estimating how much all the little bits and widgets costed along the way. The result? $674. The cost of the player? $499.

As El Reg says; "that's before the cost of assembly, packaging, peripherals, distribution, advertising, software development and so on. Oh, and that $499 is the retail price - Toshiba will be charging resellers even less for the player."

iSuppli says that this level of subsidy is 'unusual'. Hmmm...long as I get a PS3 this Xmas free with a packet of cornflakes, I don't think I really care.

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