RUMOR CONFIRMED: XBOX 360 HD-DVD DRIVE NOW $49.99

While no one at Microsoft is shouting this one from the rafters, if you take a look at the product page for the Xbox 360 HD-DVD Player over at Xbox.com, you'll notice that the official MSRP is now $49.99.

I'm guessing the lack of any kind of fanfare over this second price drop centers around the fact that Microsoft has officially discontinued the drive and would probably like nothing better than to never hear the words HD-DVD again. Regardless of the reason, if you've been considering grabbing one for either the cheap movies or collectible reasons, now may be the best time to grab one.

(Once again, just in case you aren't aware, Toshiba has officially abandoned the format, and Microsoft has announced they are discontinuing the drive. You have been warned.)

• Xbox 360 HD-DVD Player –  Xbox.com 

XBOX 360 HD-DVD DRIVE NOW $49.99 NEW AT AMAZON

Well, I was planning on hitting the sack, but then I made one last stop in at Amazon.com to check on the Xbox 360 HD-DVD player and, as was the rumor this weekend, the drive is being sold (at least at Amazon right now) for $49.99 brand new. While I haven't seen the price drop at other retailers as of yet, I can't imagine Amazon will be the only one.

(Just in case you aren't aware, Toshiba has officially abandoned the format, and Microsoft has announced they are discontinuing the drive. You have been warned.) 

• Xbox 360 HD-DVD Player – Xbox.com
• Xbox 360 HD-DVD Player $49.99 – Amazon.com
• HD-DVD Statement Issued – Gamescore Blog

UPDATE: 10:42AM – 2/25/08: It looks like the drive is now sold-out at Amazon.

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

WALMART PUTTING THE XBOX 360 HD-DVD PLAYER ON CLEARANCE?

That’s the rumor over at CheapAssGamer (by way of Kotaku) – It appears that several CAG forum members have noticed the Xbox 360’s HD-DVD player on sale at Walmart for the much reduced price of $130.00. While the price isn’t listed on the company’s website, those of you feeling the need to pick up the peripheral may want to check your local Wallyworld over the next few days to see what pricetag they actually have on the drive.

It should also be noted that ever since the launch of the PlayStation 3, Blu-Ray has been starting to pull away from HD-DVD in the high-def movie format war, so this may be a pretty good indication that we’re going to have an early winner. In other words, don’t blame me if you buy the damn thing tomorrow and the HD-DVD format goes in the crapper later in the year. While I wouldn’t say the war over just yet, if the stories on the CAG forums about Walmart saying they’re clearing out their inventory are true, it certainly is a major blow to the format.

• Was there a big price drop on xbox 360 hd dvd players – CheapAssGamer
• Rumor: 360 HD DVD Players Now Cheaper? – Kotaku

ATI CHOSEN TO MAKE XBOX 360 HD DVD DECODER

Not much of a surprise here as they also make the Xbox 360 graphic chip, but ATI has announced that Microsoft has chosen them to make the decoder for the upcoming HD-DVD add on drive for the Xbox 360.

“ATI Technologies (TSX:ATY)(NASDAQ:ATYT) today announced that Microsoft Corp. has chosen ATI’s H.264 decoder for the Xbox 360™ HD DVD player, bringing users sharper, more true-to-life visuals and smoother playback of high-definition content. HD DVDs encoded using one of three approved codecs deliver up to six times the resolution of traditional DVDs all on a single disc. Built on ATI’s Avivo™ technology, the decoder used for the Xbox 360 HD DVD player brings to bear ATI’s considerable multimedia know-how to ensure gamers, home theatre buffs, and casual viewers alike get a more perfect picture from the H.264 format” -ATI press release

As expected, the Xbox 360 GPU will handle much of the workload in rendering the video, thus eliminating many of the components used in a stand-alone HD-DVD player, which should help to keep the costs of the 360 HD-DVD add on reasonable.

“To enable the smoothest H.264 video playback possible, the ATI decoder technology makes use of the Xbox 360’s graphics processing unit (GPU) to accelerate video processing. The unified shader design of the GPU enables high-end processing techniques such as comb filtering and automatic gain control to ensure that video artifacts such as blockiness or color bands don’t disrupt playback.” -ATI press release

The Xbox 360 HD-DVD external drive is expected to hit shelves later this fall at an as of yet undetermined price. Check out the full ATI press release here and then remember that while HD-DVD may be nice to look at, until the HD format wars are decided, it’s a bit too soon to start replacing your entire DVD collection.

NO INTERNAL HD-DVD DRIVE FOR XBOX 360

There have been rumors floating around that Microsoft will be releasing a new version of the Xbox 360 that includes a built in HD-DVD drive. In a posting yesterday, Microsoft’s in-house employee blog, Gamerscore blog, shot that rumor down before it could start making the talk-show rounds;

“Saw a few stories online about an Xbox 360 with a built-in HD DVD drive: not true. We have no plans to release an Xbox 360 with an internal HD DVD. What we showcased at E3 was an external HD DVD drive, and we’re sticking with that.

We’ve always had a games-first emphasis with the Xbox, but some consumers can build on the platform – like by adding a Windows Media Center Edition PC. By keeping the drive external, we’re offering consumers a choice in creating their own hi-def experiences. So: no plans for an internal HD DVD.” -Cesar Menendez, Gamerscore Blog

While I would never suggest trusting the word of a corporate employee at face value, it certainly makes sense that this rumor would be false. Simply put, Microsoft is pushing the angle that the 360 offers you a choice regarding HD, whereas Sony is forcing you to buy a player now. Any moves against that concept would just lend credence to Sony’s position that the Blu-Ray drive is necessary. Besides, with the HD format wars just starting, I can’t see MS marrying HD-DVD technology just yet.

Check out the Gamerscore Blog posting here and remember that whole Betamax incident you were involved in before you get behind either technology just yet.

KAZ HIRAI SLAMS MICROSOFT

QJ.Net is reporting that in a recent interview with Playstation Magazine, Sony’s Kaz Hirai slammed Microsoft for “copying” everything Sony does – which is kind of surprising given the direction Sony has taken with the Playstation 3 and the features it incorporates;

“Every time we go down a path, we look behind and they’re right there – we just can’t shake these guys. I wish that they would come up with some strategies of their own, but they seem to be going down the path of everything we do. If you look at their strategy in other business areas as well, they tend to do that.” -Kaz Hirai

I don’t know about you, but that quote kind of cracks me up given how Sony is aping Microsoft’s Xbox Live service, Nintendo‘s controller designs and the like and more. To be fair though, as PSM showed us all recently, the technology being used by the Playstation 3 controller is nothing new for Sony.

Hirai apparently followed those comments with a dig about the external Xbox 360 HD-DVD drive and the confusion it could generate for consumers;

“And the other thing is, you take a look at, for example, the fact that we incorporate the Blu-ray drive from day one. You’re not going to be asking me, ‘So, talk to me about this Blu-ray add-on that you have. Does it work for games? Is it just for movies?’ That’s exactly the kind of pitfall you fall into if you launch something that’s too early, too premature…” -Kaz Hirai

At least on that end, depending on how you look at it, Hirai has a valid point. While I and many people I know prefer the idea of deciding if we want to pay the added expense of a HD-DVD drive with the 360, there are very few questions regarding how Sony can use the Blu-ray player. I’m sure there are people out there who prefer the idea of having everything built in from day one… I’m just saying I haven’t met many of them yet.

You can check out the QJ.Net story here for more details and the “current” issue of PSM for the full story.

MICROSOFT FORMALLY ANNOUNCES HD-DVD DRIVE FOR XBOX 360

Microsoft’s E3 page has been updated with an article explaining the benefits of HD-DVD, highlighting the problems with Blu-Ray and confirming that a USB based HD-DVD player add-on will be coming to the 360. The big question for most Xbox 360 owners is of course, at what price? Albert Penello, Director of Global Marketing for the Xbox stated the following;

——————————————
“Stay tuned. We decided to save that good news for another day, but we’re clearly out to make this an affordable option for Xbox 360 owners” – Albert Penello
——————————————

What does that mean? Well, it means Microsoft is bracing for the inevitable statements that the PS3 is the only console that can play HD movies. It also most likely means that Microsoft is waiting for Sony to put a price on the PS3 before they commit to a price of their own, presumably allowing them to closely match the PS3 in terms of overall cost for the ability to play HD format movies.