The price war has begun. In response to the $600 entry-level D40 DSLR that Nikon introduced just a day earlier, Canon dropped the price of its newly launched EOS Rebel XTi (400D) by $300, a full 30% off its introductory price of $1000 for the camera body plus its 18-55mm kit lens. You can now buy it at $700; $600 for the body only.
This also pushed down the price of Canonâ€™s older but much more successful Rebel XT (EOS 350D) to about $600 with the lens, now at par with the announced price of $600 also for the simplified Nikon D40. Feature for feature, the 350D has a distinct advantage over the D40.
How will Nikon respond? It will be interesting to see this develop favorably for digital camera consumers in the run-up to the holidays.