Microsoft cuts European price of HD DVD drive

Sep 3, 2007, 14:45 GMT

Berlin - Microsoft announced Monday a 20-euro cut in the price of its HD DVD add-on drive for the Xbox 360 gaming console, dealing a new blow to the rival Blu-ray disc system.

The blue-laser high-definition-disc drives are to retail in Europe for 180 euros (244 dollars).

Stand-alone movie players for the HD DVD format are to be offered in Europe for less than 300 euros, Toshiba said last week at the IFA consumer-electronics trade show in Berlin.

That is about half the European price of the cheapest Blu-ray movie player.

The Blu-ray and HD DVD camps are in a technology war with one another to persuade shoppers their technology is better to save and play movies in high definition.

In essence, Blu-ray discs can store more data, but HD DVD disc are cheaper to mass produce and the players are cheaper too.

Both camps have focussed on gaming consoles as a key to getting enough players into the marketplace.

Sony sells its PlayStation 3 with a Blu-ray drive built in, often with a package of free movies as well.

Manfred Gerdes, chief of Sony Germany, says European sales of the PS3 have totalled 2 million to date, double the number of set-top Blu-ray movie players.