Toshiba, with HD DVD, lost its bid to define the next generation HD video disc format. As promised previously, Toshiba is now trying to take advantage of customer resistance to Blu-ray with improved DVD players according to the Associated Press on Monday.

The Toshiba XD-E500 DVD player will sell for US$149.99 and claims to sharpen the look of conventional DVDs for half the price of current Blu-ray players.

Toshiba gave a demonstration last week and compared the new player to a standard DVD player costing about US$70. Reporters said the Toshiba player produced a "subtle but noticeable sharpening of the image," according to the AP

Toshiba was careful not to compare the images to a Blu-ray player. "If you want Blu-ray, go get Blu-ray. This product is meant to improve playback of DVDs," said Louis Masses with Toshiba.

Toshiba is trying to take advantage of the fairly slow adoption of Blu-ray players which are expensive for customers in tough economic times. Also, studies have shown that many potential Blu-ray customers believe that the DVD images are "good enough."

In 2009, Blu-ray player prices are expected to hit $200, and when that happens, the window for Toshiba's short lived product may close because Blu-ray players also produce good looking DVD playback. In the meantime, for some customers looking for a new DVD player for their HDTV, this product may be all they need -- and can afford.