DigiTimes is claiming that because of Blue-laser diodes yields being so low. They said that any HD-DVD player being sold at that price would be being sold at less than production cost.
The thing is the makers of the diodes including Sony and Matsushita (Panasonic) have assigned their production capacities for own use first. If this is true then if Sony could just get things together they could be the first to have a low cost next-gen DVD player.
This also means that for some time the cheapest way to get High definition content into your home theater is the XBox360 HD-DVD drive or the Playstation 3.