They are talking about manufacturing a disc for HD-DVD formating not actually the cost of moving a title to the HD-DVD format, adding fuctionallity under iHD and then putting it on the HD-DVD disc for sale to the consumer. There is alot more money and processes involved then in the actual pressing of the disc to get a movie to the consumer in a high def format.
I wanted to quote this, and now I am going to have the person who sits next to me at work type the following message, because for some reason my fingers fail to move when I begin to try and hit the keys...
Hi, I am Stevo's neighbor, and he is dictating what to type to me.
He says: 'I agree with JoeSP'
Additionally, (speculating) the BD discs MSRP is one thing, wholesale is another, and the price you pay is a cozy spot in between, likely a bit closer or at MSRP in most cases. Retailers and wholesalers are making their money. It's not entirely HDDVDs fault they aren't cheap, and the same goes for BD, even though it sounds easier to justify the higher price for the BD media.