Microsoft Drops HD-DVD Player Price

Perhaps trying to rally support following the move away from the format by a number of major Hollywood studios, Microsoft has announced that the retail price of its HD-DVD peripheral has been dropped by $50 to $129.99. Xbox spokesman Major Nelson announced the price drop via his weblog, also noting that the company's deal to give peripheral purchasers their choice of 5 free HD-DVDs (pdf) still stands. The price drop follows the major announcement Warner Bros. made in early January when it said, just prior to the Consumer Electronics Show, that it has sided exclusively with Blu-Ray as its high-definition video format of choice beginning later this year, as it phases out HD DVD production by May of 2008. Shortly thereafter, fellow studios HBO and New Line also pledged their support to rival video format Blu-ray. Paramount, however, said it would continue to support HD DVD. Though Microsoft has repeatedly and firmly stated that it has no plans to switch its allegiance and offer a Blu-ray player, Xbox group marketing manager Albert Penello, speaking to Reuters at CES, said, “Should be consumer choice; and if that's the way they vote, that's something we'll have to consider."