XBOX 360 HD-DVD DRIVE PRICE DROP ANNOUNCED

According to Microsoft's in-house blog, Gamescore Blog, effective immediately the Xbox 360 HD-DVD drive add-on will see a $50 price reduction, bringing it's cost down to $129.99. 

"We’re happy to announce that we’re lowering the price of the popular Xbox 360 HD DVD player from $179 to $129 (estimated retail price) in the U.S. and Canada, effective immediately." – Gamerscore Blog

That's the whole text of the message – which makes me think that Microsoft isn't quite as happy to be making this announcement as they claim to be. I don't know about you, but this one has the smell of desperation written all over it. With the recent upswing in Blu-Ray's install base and the rumored departures of even more studios from the HD-DVD side, I do have to wonder if Microsoft will continue to produce the drives or if this is just their way of clearing inventory. 

One thing is for certain, collectors should begin keeping an eye on the drive, because if history teaches us anything, it's that once the price bottoms out and the spare inventory is gone, the aftermarket cost will explode. It may not happen this month, next month or the even in the next six months depending on how the high-definition video format wars go, but I get the feeling at some point, the drive is going to wind up in the clearance bin.

•  Xbox 360 HD DVD Drops Price to $129.99 in US and Canada – Gamerscore Blog