I think that Toshiba is banking heavily on the holiday season. No company can continue to lose money like they are on their HD DVD players. It's not like Sony and the PS3, where they can recoup the costs of the PS3 through games.
I think that Sony missed their chance to stick it to Toshiba. They had a huge lead earlier this year and instead of cutting prices, they milked their Blu-ray players for as much as they could. Also, their inability to price their Blu-ray player less than the PS3 is just assinine. The PS3 is a game console. It should be price at, or less, than a stand alone player.
"Blu-ray is just a bag of hurt." - Steve Jobs