Toshiba to have $200 deficit for each HD-DVD player sold

Look's like Toshiba is taking one for the team. It is estimated that Toshiba will lose approximately $200 for every HD-A1 HD-DVD player sold. According to a report published by iSupli the components needed to assemble the HD-A1 came to approximately $674, this isn’t even taking into consideration the cost for packaging, component cables, and remote control, which if you factor in the total cost would be around $700.

Why would Toshiba be willing for such the large profit loss? My guess is to establish a hold on the next-generation market format. A $500 HD-DVD player is certainly more attractive than a $1000 Blu-Ray player.
Now lets ask, is a lower price over Blu-Ray worth the finical risk?


Xbox-HQ,
Loki

News-Source:www.yahoo.com