Call it the Blu-ray effect. With the other high definition DVD format set to release in a few days, Universal is dropping prices on all their HD DVD releases from $34.95 to $29.95. Since retailers rarely sell the movies for the actual MSRP, we'll see what this translates to on store shelves and if when Blu-ray launches, it is actually cheaper than HD DVD.

In the second bit of Universal HD DVD news, also from High Def DVD Digest, they are following Warner Bros. lead and releasing hybrid HD DVD/DVD discs. Their first releases on the format will be National Lampoon's Animal House and Unleashed. They will continue to be listed at $34.95. Looks like competition is benefiting the consumer already. We'll be a little happier when we see price drops on the hardware and more content available however. Also, will Warner drop the prices on their movies, and what about Paramount's indefinitely delayed titles?

Read - Universal cuts prices on HD DVD
Read - Universal schedules two combo HD DVD/DVD movies

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Universal cuts HD DVD prices, announces two combo HD DVD/DVDs