Toshiba have launched the second generation of their HD-DVD players worldwide, the HD-E1 and HD-XE1 in Europe and the HD-A2 and the HD-XA2 in the US. Although second generation in the US, these decks are actually first generation in Europe. The lower cost HD-E1 was released in October 2006 and received good reviews from buyers on the Amazon UK and US sites. The HD-XE1 was released in the UK in March 2007.

The new decks are based on the A1 models which received mixed reviews. Previous issues with the HD-DVD players included slow load times for the HD-DVD discs, a bulky and somewhat dated design as well as a temperamental HDMI connector. The Picture quality was however stunning.

Both new models feature many improvements to make them easier to use. The new Toshibas have been slimmed down and feature a high-gloss face plate. The high-end HD-XE1 outputs a full 1080p signal (1920x1080) the highest HD signal currently available, via the new HDMI 1.3 interface. It also incorporates a 297MHz / 12 bit Video DAC with high-quality, 4x oversampling. There's a picture setting function to optimise picture quality with user adjustable settings including colour, contrast, brightness, edge enhancement and block noise. It comes with an Ethernet connection for downloading special movie related interactive features when they eventually become available. The HD XE1 is now available for around £550.