As we predicted, BD player prices are plunging in time for the Christmas buying season. At €399 (£299), Sony’s new 40GB PS3 will be a tempting option for any early adopters thinking of starting out on the long road towards upgrading their DVD collection to high definition. The PS3’s form factor and design may not appeal to buyers used to wafer-thin DVD players. But then it also includes a hard drive (albeit one scarcely able to cope with HD content) and wireless connectivity, not features of your standard BD player. Sony must be confident that the new PS3 will be supported by a raft of new games titles in the next couple of months, given that it has sacrificed PS2 compatibility to squeeze cost out of the new console. Lack of choice in games is one of the biggest complaints of early PS3-ers, and the new device will not do well if buyers are not able immediately to get their hands on two or three compelling titles. The new price point will certainly make holiday season gift buyers think twice about the Xbox 360, which enters the European market at £250. Microsoft will not want to start another round of price cuts, but if sales strength is not maintained thru November it may have no choice. Nintendo is unlikely to be affected: it seems increasingly clear that the Wii is in a market of its own, and many Wii owners will also be future PS3 adopters. sub=addfavbtn&add=http://www.strategyanalytics.com/blogs/dmercer">