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While we have heard the rumors, it now looks like it will soon be official. During a recent conference call, the CEO of Netflix, Reed Hastings announced that because Blu-ray discs cost more money to purchase, that they need to charge a higher rental rate for them. He also went on to state that “consumers are used to paying more for high-definition.”

Personally I think consumers are used to paying more to own high-definition, I am not so sure how eager they will be to pay more to rent it. Currently Netflix has a small amount of subscribers who choose Blu-ray over standard DVD’s and with a price increase it seems that small percentage will remain small.

While the statements from Hastings seemed pretty clear that the price increase was going to happen, there has not been any official statement as to just how much the increase will be. As for when it will take effect, customers can expect to see it “later this year.”

Via [Crave]

If you’re really into spending the extra bucks for the special edition U2 iPod, you’ll be happy to know that Apple has just updated it and dropped the price from $329 to $279.  If you’re not familiar with the U2 iPod, it is exactly the same as a black 30GB iPod but has a red scroll wheel, fake signatures of all the U2 members, and is loaded up with a bunch of U2 crap.  Apple has also brought all of the specs in-line with their recent enhancements to the 5G device.  Head over to the Apple store and pick one up for yourself… or you could save $30 and get a standard black one.

Read [Apple] Via [iLounge]

The guys over at Gizmodo are reporting that Microsoft just held a meeting to determine the final selling price of the Zune.  The Mole told them that originally Microsoft was going to undercut the 30GB iPod by $10 until Apple dropped the price.  It’s only natural that they see to it that Apple’s price continues to lag behind.  There’s no doubt Microsoft is selling the device at a loss - similar to the Xbox 360 - so they can gain market share and gain back money in the Zune Marketplace.  Very smart Microsoft, but there’s no chance Stevie J is going to let this one slide.

Update: Price has been confirmed at $249.99

Read [Gizmodo]

Ever since Apple lowered their prices and Microsoft decided not to announce a price, there’s been talk of Microsoft not being able to meet the 30GB iPod’s price.  Oh but wait a minute, because one of Microsoft’s Zune division employees, David Caulton, tells people to drop the rumors.

A commenter mentioned that they’d “read” that Zune would cost more than the 30GB iPod. I can only say: Don’t believe everything you read. I can’t specifically talk about price, but I can say that Zune won’t be undercut on price by iPod.

Check out my take on the pricing mash-up here.

Read [Zunester]

This week, Microsoft took the wraps off their new Zune platform of connected media devices.  They announced their headline Zune player as well as plans for integration with the Zune Marketplace, both which are similar to the offerings of Apple.  Earlier in the week, Apple’s Steve Jobs announced at one of his famous special events entitled “It’s Showtime” that Apple is cutting the price of its 30GB iPod from $299 to $249.  This quick and drastic price change likely caught Microsoft off-guard, analysts are saying.

“Microsoft formally announced its Zune portable media player, with specs in-line with Toshiba FCC filings,” American Technology Research analyst Shaw Wu told clients on Friday. “However, pricing and timing were not revealed likely because our sources indicate that Apple’s aggressive pricing at $249 for its new 30 GB video iPod took Microsoft by surprise.”

It looks like Apple made Microsoft’s pricing strategy obselete before it was event announced.  If this is any indicator for the future, get ready for a market share battle during the next couple of years.

During the holiday season this year, we’ll have our first opportunity to see the Zune up against the iPod.  After all of the positive press coverage of the Zune lately, I think Apple’s going to have a run for their money.

Read [AppleInsider]

Todd Holmdahl, Corporate VP of the Xbox Product Group, recently told Reuters Microsoft’s plans to lower the price of the Xbox 360 console each year.  If they stick to this pricing strategy, they will always have a one-up on the competing systems PS3 and Wii.  Who knows, they may even be able to come down enough to lure consumers away from their sub $250 Wii purchase.  By the time the PS3 comes out, expect the price to be cut a fair amount.

Corporate VP Holmdahl says the 360 will be reduced yearly as the price war hots up even before launch

Having lost almost $4 billion on launching the Xbox, Microsoft aims to break even within two years with the Xbox 360. And in another aggressive move, the company is stating it is committed to reducing the price of its new machine on a yearly basis.
Speaking to Reuters, Todd Holmdahl, corporate vice president of the Xbox product group stated: “We will wind up cost-reducing the product every year,” and given the use of licensing technology rather than buying off the shelf components, Microsoft should easily be in a position to do so.

Read [Xbox365]

After getting our hands on the leaked prices last week, we weren’t too happy with Microsoft.  Well, they’ve announced the prices offically this time - and we’re still not too happy.  The pricing will go as follows:

Full Version
Vista Ultimate: $399
Vista Business: $299
Vista Home Premium: $239
Vista Home Basic: $199

Upgrade
Vista Ultimate: $259
Vista Business: $199
Vista Home Premium: $159
Vista Home Basic: $99

Via [Gizmodo]
Read [Microsoft]

Windows Vista has been talked about for years upon years now, but pricing information has remained a secret...until now.  Earlier today, Microsoft Canada accidentally posted the pricing figures for their upcoming operating system.  Luckily Ed over at ZDNet caught a glimpse of the numbers before Microsoft pulled it from the list.  Unfortunately, the numbers are in Canadian bucks, so don’t take the numbers to heart.  ZDNet blogger Adrian got a “non-denial" denial out of a Microsoft spokesperson earlier today.

“Microsoft inadvertently posted Windows Vista Canadian retail prices on their Web site, and the information has since been removed. There is no new pricing information to share currently but we plan to announce Windows Vista U.S. pricing when we ship Windows Vista RC1, later this quarter.”

Ed also compared the four basic packages to similar ones in the XP portfolio to give us a better idea of what they will cost us.  Below is the comparison between the two, and you can find the complete list of Canadian prices after the jump.

(Vista in CDN / XP in USD)

Windows Vista Ultimate $349/$199

Windows Vista Business $269/179

Windows Vista Home Premium $239/$139

Windows Vista Home Basic $199/$99

FULL versions (all prices Canadian)

Windows Vista Ultimate $499

Windows XP Professional w/SP2 $429

Windows Vista Business $379

Windows Vista Home Premium $299

Windows Vista Home Basic $259

Windows XP Home w/SP2 $259

UPGRADE versions (all prices Canadian)

Windows Vista Ultimate Upgrade $299

Windows XP Professional w/SP2 Upgrade $259

Windows Vista Business Upgrade $249

Windows Vista Home Premium Upgrade $199

Windows Vista Home Basic Upgrade $129

Windows XP Home w/SP2 Upgrade $129

Read [Ed Bott]

Nintendo confirmed today that the price of the Wii system will not exceed $250 in America, or 25,000 yen in Japan. The company plans to ship 6 million systems to retailers around the world between its launch in the fourth quarter of 2006 and the end of its fiscal
year on March 31, 2007. The company also said it expects to sell 17 million Wii games in the period. Exact launch dates, identification of the launch library of titles and details on the unique Virtual Console aspect of Wii will be announced soon.

Gizmodo has done a nice job of graphing out the believed pricing of Sony’s PlayStation 3 system. In case you missed it, and we’re not sure how, the system will set you back $499 for the 20 GB version (minus other specs as well) or $599 for the 60 GB, HDMI, WiFi version...here in America. European pricing can he seen here.

Can you imagine that at one time it was predicted to cost $365 and another $800!?!?

Read [Gizmodo]