BDP-S1, Sony's first DVD player released six months ago, was twice expensive than the newly coming model. Analysts rate this price as decrease as the fastest one in consumer electronics market.

BDP-S300 DVD player has almost the new features as the previous one, but it is smaller.

Sony's representative explained the price change with decreased production costs and growing demand for Blu-Ray products.

"The BD format gained great momentum in the past several months, and we're going to capitalize on that with the new model," said Chris Fawcett, vice president of marketing for Sony Electronics' home product division. "The player gives a broader consumer segment the opportunity to experience the exceptional quality of Blu-ray disc format at a competitive price."

But analysts think this move is most likely to win the market from Toshiba.

Toshiba is Sony's rival and it took a large range of consumers by the release of High Definition DVDs. Its DVD players are in the stores for 14 months already and each unit now costs less than $300.

The rival companies are not the only participants of the war. LG, Panasonic, Pioneer, Samsung support Blu-Ray DVDs and Fuji Intel, HP, Microsoft, NEC, Paramount RCA, Sanyo support HD DVDs. So the battle for the market is larger than we could imagine. It is very similar with the battle in 1980's, when Sony's Betamax was against Toshiba's VHS. By Ruzan Harutyunyan for HULIQ