Microsoft slashes Xbox 360 HD DVD player price to $129.99

More than six months after slashing the price of Xbox 360 HD DVD Player, Microsoft has further cut the price of the movie player by $50 in North America, bringing the price of the Wii-sized drive down from a whopping $179.99 to $129.99.

Microsoft had launched the Xbox 360 HD DVD player in November 2006 with a price tag of $199, and in July 2007 the company announced a $20 drop to it.

Last year on July 26, the world’s largest software company had cut the price of Xbox 360 HD DVD Player by 10% or $20 to US$179, and added five free high-definition DVD movies to the player, in an effort to boost its sale in midst of the Blu-ray/HD DVD formats war.

The latest price cut is effective immediately in the United States, Canada, Australia and New Zealand, Microsoft's Larry "Major Nelson" Hryb has confirmed via his blog yesterday. In addition, the offer for five free HD DVDs with purchase of the unit still stands valid as well, Hryb said.

The Xbox 360 HD DVD Player plugs into Xbox 360 and gives the ultimate home theater experience with more clarity and detail than broadcast, cable, or satellite HD.

Blu-ray format, backed by a group led by Sony Corp. and the rival HD DVD format, backed by a consortium headed by Toshiba Corp., have been indulged in battle for the $24-billion-a-year home video market share since their launch in Year 2006.

Both the standards are promising and provide increased data storage on the same disc dimensions to allow higher definition multimedia, but at the same time, they are incompatible, forcing consumers as well as the dealers to choose.

Last month, the creator and promoter of HD-DVD format, Toshiba, suffered a major setback after Warner Bros. Entertainment announced it would support the competing Blu-ray format, and would release its movies only in the Blu Ray format. In Response, however, Toshiba announced important price cuts in all its HD DVD stand alone players.

Responding to latest price cut, a Microsoft representative said, "This move is based on continuing the success of HD DVD in the market and responding to consumer demand as experienced during the fourth quarter and Toshiba's recent price moves which increased their player sales significantly."

"Clearly pricing is the most critical determinant in a consumer's purchasing decision and we're simply responding to the market. Also, given the production efficiencies inherent in the HD DVD format, we're able to suggest more cost-effective pricing, especially as sales volumes increase," he added.