Toshiba has slashed the prices of its next-generation HD-DVD players in the key US market in an apparent last-ditch effort to save the format following a series of victories for the rival Blu-ray technology.

Sony, which is backing Blu-ray, and Toshiba have been locked in a format war for the past 18 months, leaving consumers bewildered and confused, and leading to the possibility of a damaging stalemate.