Brad Wilson points to a report that's going to be very, very bad news for Sony: the cost of an HD DVD player is going to be half (or less) the cost of a Blu-Ray device:

Toshiba, the principal backer of the HD DVD format, planted its stake firmly in the low-end of the high-definition hardware market, unveiling a $499.99 HD DVD player at the Consumer Electronics Show here Wednesday.

The new model, dubbed the HD-XA1, is slated to hit retail shelves in the U.S. in March, along with a more fully featured model, the HD-A1, which carries a list price of $799.99.

Toshiba’s aggressive pricing strategy seems designed to put maximum pressure on backers of the rival Blu-ray Disc format, which is expected to carry much higher sticker prices when the first players hit the market sometime this summer.

Among Blu-ray manufacturers, only Pioneer and Panasonic disclosed initial player prices, with consoles weighing in at $1,800 and $1,000, respectively.

Sony has bet big on Blu-Ray as part of the PS3 - and with price differentials like that, this looks like it'll be VHS versus BetaMax all over again.