As Sony PS3 will be supporting the Blu Ray, providing the new format with a large number of supporting playback devices, NEC and Toshiba have their eyes at the Microsoft Xbox 2. The fact that PS3 will support Blu-Ray, will give the format significant edge on the market, and therefore this is a clearly a direct counter measure by the HD-DVD camp.
There's been some concern that pricing for systems that make use of these next generation storage formats would be too high given the expected arrival time of Blue Ray and HD-DVD. At CEATEC, NEC revealed that it plans to push HD-DVD as a storage format for the PC by placing HD-DVD drives in its own computers and selling drives to other computer manufacturers. The company aims at making computers with HD-DVD drives available in the latter half of 2005, and aims for drive prices to drop to 300 dollars within half a year of inclusion.Source: IGN.com