The entry-level Blu-ray player (S300) will drop from an RRP of $999 to $799, while the higher-end player (S500) will drop from $1299 to $1099.

Despite these cuts, as well as the announcement of a sub-$700 PS3 console, Sony's cheapest Blu-ray offering is still more expensive than Toshiba's. Toshiba cut its entry level player's RRP from $899 to a low $499. Its higher end player went down from $1599 to $1299. The Toshiba players come with three HD DVDs, while the Sony players come with five Blu-ray discs until the end of December.

The price cuts announced by Sony will come into effect as of tomorrow.

"We see this new pricing structure as a positive step for growing the Blu-ray Disc market in Australia, enabling more Australians to have access to the superior picture and sound quality the format offers. As more and more Blu-ray Disc titles are released – with well over 200 expected in market by Christmas – Blu-ray will really cement itself as the format of the future," said Sony Australia Assistant Product Manager for Home Video Andrew Smith.

See: www.sony.com.au