New York - High prices and competing formats will impede sales of next-generation DVD players for the next 18 months, according to a report from market research firm Forrester Research.

Currently, movie studios are largely favoring one or the other format, meaning some movies will play on one player but not on the other -- although some manufacturers have introduced dual-format players.

Forrester reiterated its prediction that Sony's Blu-ray will eventually win out over Toshiba's rival HD DVD format, but indicated it believes Sony needs to slash prices on its devices.

Players from both format camps are expected to be discounted in advance of the holiday shopping season.

"Blu-ray needs to offer a viable hardware model at the $250 price point by Christmas 2007," said Forrester analyst J.P. Gownder.

"The Blu-ray camp must also stave off further studio defections, and employ more aggressive promotional tactics to counter HD DVD's recent momentum. Failure to alter strategy would open up Blu-ray to a possible upset defeat at the hands of HD DVD."

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