Microsoft to Drop Price of HD Add-On

According to the AP Microsoft is cutting the cost of the HD DVD Add-On player for the Xbox 360.

SAN DIEGO (AP) -- Microsoft Corp. on Thursday said it would trim the price of an HD DVD player add-on for its Xbox 360 video game console and give away movies with the player, in a bid to support the format.

The move comes one day after Target Corp. confirmed that it will promote the rival Blu-ray format for high-definition DVDs this holiday season, following a similar move by rental giant Blockbuster Corp.

Microsoft trimmed the price of the player to $179 from $199, and said it will add five free movies for buyers between Aug. 1 and Sept. 30.

Most Hollywood studios are releasing films either in Blu-ray only or together with HD DVD. Only Universal Studios, a unit of General Electric, is releasing exclusively in HD DVD.

The real question is, is this too little too late? A $20 incentive to buy a player that appears to be losing out to Blu-Ray may not be enough. Blockbuster's support of Blu-Ray may end up being the death nail for the HD-DVD format and Sony may have finally won a format war.

Somehow I doubt the folks at Microsoft will ever allow a direct compatible Sony Blu-Ray player for the 360 though. Personally I'm holding out for a cross platform player similar to the Samsung BH 100.

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