According to sources, the Toshiba HD-A1 looses $200 on each and every sale. This is iSuppli who have taken the thing appart and priced up each part. They reakon it costs over $700 to make one of these units which sells at $500.
The reason being that they want to penetrate the market before all the Blu-Ray technology comes out later on this year.
Via: HDBeat
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