Not an unexpected move by Microsoft
The move by Microsoft to slash the price of the HD DVD add-on external drive for the Xbox 360 does not really come as much of a surprise. The new price of the add-on drive is now US$129 at most retailers. Given all of the turmoil in the HD DVD vs. Blu-ray format war, the recent defection of Warner Brothers and several other smaller studios to Blu-ray has led to a fire sale on HD DVD players. The latest peripheral to be added to this list is the Xbox 360 add-on drive.
While the Xbox 360 HD DVD add-on drive bundle will not change, it appears to be an effort to start to wind down inventory of the add-on drive that retailers as well as Microsoft have on hand. The HD DVD add-on drive bundle will still include the re-make of the movie King Kong in HD DVD as well as Xbox 360 universal remote.
Purchasers of the HD DVD add-on drive will still be eligible to receive five free mail-in movies till the offer expires February 28th, 2008. While we can’t confirm that there will be additional price cuts on the HD DVD add-on drive, we suspect that if inventory isn’t moving fast enough the price may drop again. Of course, given the current situation for the future of movie titles in the HD DVD format, the drive may be a tougher sell than the price might make it appear on the surface.
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David Stellmack
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