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Toshiba says that discount retailer Kmart will only sell Toshiba HD DVD players and will not offer Blu-ray players.

Toshiba spokeswoman Jody Sally said that Kmart has decided to carry HD DVD instead of Blu-ray because of its lower price according to Home Media Magazine. The Toshiba HD DVD player sells for $299 but is available for $198 at a number of retailers including Wal-Mart and Circuit City.

Kmart will continue to sell the Playstation 3, which has a Blu-ray player inside, but its marketing will be concentrated on HD DVD. The least expensive Blu-ray player retails for $499 and Sony says it will launch a $399 Playstation 3 next month.

Craig Kornblau, president of Universal Studios Home Entertainment, which supports HD DVD said the $200 price will help to reach a mass audience. Sally agreed that the lower price would help sales.

"There was no official move on our MSRP, but I'm happy to see the strong sales momentum on our players," Sally said. "We experienced a great lift in player sales when Transformers (Paramount) was released, and the strong momentum continues."