Microsoft slashes price of Xbox 360 HD DVD add-on

Microsoft continues to play hardball in the next-generation DVD format wars, this time slashing the price of its add-on HD DVD player for Xbox 360 by 30 percent.

The price cut does not seem to be effective for all retailers: as of Wednesday morning it was only showing the new $129 price at Toys-R-Us and Amazon.com. In any event, the move shows that the Redmond company is nowhere near ready to give up on HD DVD.

Through Black Friday, approximately 2.7 million Blu-ray players have been sold, including PlayStation 3 consoles. On the other hand, about 750,000 HD DVD players have made it into consumers' hands, for the most part set-top boxes.

Microsoft last cut the price of its HD DVD add-on from $199 to $179 as prices for the format's players first began to fall. This latest cut is likely in response to continuing price cuts, which are reflecting rapidly reduced manufacturing costs.

With the add-on, buyers will receive a media remote. In addition, King Kong is included, and the player is eligible for the currently running five free HD DVD promotion from Toshiba.