An embarrassing price gap has opened up between the cost of the Panasonic DMP-BD35 Blu-ray player in the US and UK. The slimline deck has debuted in US stores at $299, despite initially being presented to the US media as a $399 product.

The price point makes it the first out-of-the-box profile 2.0 player to undercut the PS3. Its nearest rivals, Sony's BDP-S350 and Samsung's BD-P1500, need firmware updates before they offer web interactivity. Samsung's BD-2500 and BD-2550, typically sell for $399 and $499 respectively.

In the UK, however, the player currently carries a £299.99 price ticket at
When asked to explain the price differential, Panasonic UK spokesperson Jane Hinton said: 'We cannot really comment on the US market conditions, as we have no information to date on that market. We believe we are offering a very good value product, with high spec features.'

However, Hinton confirmed: 'As with all our products we do our best to offer value=added, competitive products to our customers, and as of Friday this week we are re-positioning the DMP-BD35 to a price of £269.99 (our E-shop price) in line with price movements from our competitors.

Panasonic BD35 Blu-ray makes cut-price US debut, UK version to be reduced this week | Home Cinema Choice