Blu-ray must be able to compete effectively with HD DVD on price

Market research firm Forrester Research, which has long predicted that Sony's Blu-ray system will eventually win out over Toshiba's HD DVD as the format of choice for high-definition home video, expressed concern over Sony's strategy. In its latest report, Forrester analyst J.P. Gownder maintained that Blu-ray must be able to compete effectively with HD DVD on price and that if it does not, it can lose its current edge. Gownder said that Blu-ray must introduce a player below $250 by Christmas and be more aggressive in promoting the system. Meanwhile, Home Theater Specialists of America, a group of specialty HDTV dealers and installers, announced that its members would only be installing Blu-ray players from now on. The announcement came as a study was released indicating that Blu-ray was already installed in 92 percent of home-theater installations in the U.S.