Kmart supports HD DVD, as Walmart slashes prices

North American discount retailer Kmart says that it will carry just HD DVD players, dropping Blu-ray machines from its product range.

The company says that it has come to its decision because HD DVD players are significantly cheaper than their Blu-ray counterparts. Toshiba's entry level HD DVD machine normally retails for $229 - but several major outlets, including Circuit City and Wal-Mart, have announced that they have cut this retail price to just $198.

In comparison, the cheapest Blu-ray player in the US currently sells for $499 - although Sony is due to release its $399 PlayStation 3, which comes with a Blu-ray player already incorporated.

Craig Kornblau, president of Universal Studios Home Entertainment, which backs HD DVD exclusively, claims that the low retail price will prove decisive in attracting consumers to the format.

Toshiba spokesperson Jodi Sally agrees.

"There was no official move on our MSRP, but I’m happy to see the strong sales momentum on our players,” the Toshiba representative said.

"We experienced a great lift in player sales when Transformers (Paramount) was released, and the strong momentum continues."