High Def Inheritor
DS: Out of the gate, HD DVD hardware is well under $1,000. This price point is great for consumers, but how is it for the retailer? Does it put more of a burden on you to sell more accessories, etc.?
Temiz: The price point is very reasonable for the initial units. However, in comparison to the existing trend in DVD pricing, it will be a big jump in pricing to most consumers. When the customers see and experience the difference between the existing DVD players and the new ones, it should not be hard to justify the difference in pricing. With the accessories, the higher retail pricing demands to sell a higher dollar amount in accessories since our current assortment in HDMI cables are at higher retail pricing than our assortment in component video cables.
Anderson: Although the entry-level HD DVD player is currently positioned around $500, I think the high-performance nature of the product will encourage many customers to opt for higher-end models with enhanced flexibility and features. Accessories are an important part of the sale and we will continue to make sure our customers have the cables they need to maximize their experience.