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Innovation

Microsoft cuts Xbox DVD player to $179

Price trimmed 10 percent for Xbox 360's HD DVD accessory, which now includes five free movies for those who buy in August or September.
Written by ZDNET Editors, Contributor on
Microsoft said on Thursday it would lower the price of the high-definition DVD player accessory for its Xbox 360 game console in the United States to $179 from $199, and add five free movies to anyone who buys the machine in August or September.

HD DVD is a next-generation technology developed by Toshiba and backed by Microsoft and film studios including Warner Bros. It competes with Blu-ray, a DVD system from Sony, which is built into its PlayStation 3 game console, an Xbox rival.

Attaching the players to popular game consoles is seen by both camps as a way to get the technology into millions of homes, and pique consumers' interest.

A mass market for high-definition video is still some way off, due in part to the high price of the devices. Blu-ray and HD DVD are battling for domination in a war reminiscent of the VHS-Betamax battle of the 1970s and 1980s. That war was won by VHS after about a decade.

Rival Sony cut the price of its PS3 game console earlier this month to ignite demand. Sony and Microsoft are in a three-way battle with Nintendo, which makes the popular Wii game console, for control of a $30 billion video game market.

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