On the street prices are coming down for both formats. IMO $399 is still too high. Most people don’t want to pay more than about $150 for a DVD player, so I think HD DVD is still a little high. I suspect this format war is going to be long and drawn out. Neither format is selling as well as some hoped. I thought this would take years for the market to develop and the formats are doing about as well as I guessed a year ago.
HDTV in general is a high end market for the next 2-3 years. I’m not sure a $100 difference will make a bit of difference (and it hasn’t) in this case. It’s about where the movies are and where the capacity is.