Now there are reports that Wal-Mart today will sell the Toshiba player for less than $100 for a limited time; Best Buy (BBY) might follow suit.

So what’s the Blu-ray camp thinking about all this?

Microsoft’s Zune: The sequel (Photos 1-4)

The best way to find out is to ask. So I got on the phone with Bill Sheppard, who serves as a director of the Blu-ray Disc Association and the Chief Digital Media Officer of the Client Software Group at Sun Microsystems (JAVA).

Sheppard had plenty to say. He’s still confident that Blu-ray will beat HD DVD, unless millions of shoppers “take the bait” and buy the low-cost HD DVD players. But the Blu-ray camp has some of its own cards left to play – he said to expect to see them offer discounts to shoppers who pick up a TV for the holidays. But how far will Blu-ray backers drop their prices to compete? Listen to the two interview segments below to find out.

Part 1:

[youtube=http://www.youtube.com/watch?v=IOPNL7xm9cw&rel=1]

—

Part 2:

[youtube=http://www.youtube.com/watch?v=TRFNqFMRWuY&rel=1]