Xbox 360 HD DVD drive gets the axe

Stopping short of saying it would produce a external Blu-ray drive, Microsoft has discontinued the accessory.

Those who had purchased the drive would still be eligible for warranty and product support. But as many suspected, the Redmond company gave a hat tip to streaming media as the way of the future.

Microsoft's "long-term view" is that support for high definition disc formats is less important than furthering downloadable content. Some Blu-ray supporters have often cited the company's support as more strategic than anything.

By drawing out the format wars, some said, Microsoft could slow next-generation disc adoption enough to let downloadable content become more viable -- a situation from which Microsoft could stand to benefit.

It was not immediately clear how the remaining inventory would be handled, whether through a clearance sale or request by the company to return all remaining stock. Since typically Microsoft only sent a handful of units to stores, there likely is not many currently available at retail.

Since the format was already struggling so as it was, Microsoft expects no negative effect on the success of the Xbox 360 overall.

"HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room, along with playback of the DVD movies they already own," the company said in a statement.