Blu-ray is the only remaining HD standard movie format that remains for home users. The problem with Blu-ray is that players are expensive for the most part. According to ABI Research, the cost of Blu-ray players will drop this holiday season as hardware makers try and lure new customers to the format.

ABI says that the price of older players will drop to prices of under $200. The research firm points to the Amazon Samsung player for $200 that also ships with four Blu-ray movies. Some Blu-ray players may even sell for as low as $150. The price drops come as penetration of the format is low and increased competition from streaming HD films impacts the market.

Blu-ray vendors and dealers are starting to realize that for Blu-ray to become the next DVD, they need to lower player prices in order to generate interest and build volumes,” comments ABI Research principal analyst Steve Wilson. “They are also getting more competition than they expected from download alternatives such as Xbox 360 and the Roku Netflix player, TiVo and Amazon. However downloads provide an opportunity as well as a threat: both LG and Samsung have concluded agreements with Netflix that allow some of their players to download movies and TV shows straight from Netflix. The more the Blu-ray players adopt these download capabilities, the better they will be able to differentiate themselves from standard DVD players.”

Via ABI Research