In a bid to spur sales of its MP4 player, Handheld Entertainment has lowered the retail price of their 128MB Zvue from US $149.95 to US $99.95. The price drop coincides with the firm’s retail distribution expansion to over 1,000 retail outlets nationwide.

The Zvue is quite small actually, just about the size of a deck of cards, yet it can play MPEG-4/AVI videos, MP3 and OGG audio music files. It stores them on a SD or MMC memory card with no internal memory. It also features a 2.5 inch color TFT screen. The Zvue is just about five ounces and measures 4.33” x 2.91” x 1.1″. Light huh? And now it’s light on your pocket too… figuratively, with its new marked down price.

“The ZVUE’s new $99.95 MSRP is a breakthrough in pricing for the portable media player market as most of them cost more than $250 and don’t have access to any kind of video content that is readily playable”, according to Jeff Oscodar, CEO of Handheld Entertainment.

If you’re wondering where you can get the Zvue now, take a trip to Wal-Mart, which now carries this low-cost portable video player. Wal-Mart sells the ZVUE player with a 128MB card for $94.86.