Sources are saying that Wal-Mart will have a US$298 Blu-ray player on the shelves for the Memorial Day weekend, according to Video Business on Wednesday. Some AVS Forum members have reported seeing them in spot locations already.

The player will be made by Funai which had already announced its plans to bring the lower cost player to the North American market this quarter.

The Blu-ray player will be branded under the label Magnavox and will have BD 1.1 support, according to the report.

Currently, the least expensive Blu-ray players have been selling for about US$400. This price reduction could spur sales, but most observers don't expect to see Blu-ray player sales really take off until the magic US$200 price is reached.

The player will also be sold at Best Buy. With the high cost of gasoline and many who might have traveled over the Memorial Day weekend staying home, retailers are hoping customers will watch some new Blu-ray movies in their living rooms. They may need to throw in some promotions to get those $40 movie titles moving as well.

iPO notes that customers who just want to watch movies with the new technology will probably be happy since the Magnavox brand has received good marks from Consumer Reports. However, those who are videophiles will want to pay close attention to the warranty, Ethernet upgradability and the various audio formats supported before they spring for the lower cost player.