Microsoft just cut the price of its outboard HD DVD drive for Xbox 360 to $179, a $20 savings. The news comes days after reports that some form of $50 reduction is due Aug. 8 for 360 consoles.
In addition, buyers of the HD DVD drive get five free HD DVDs via the high-def format's promotion (which mimicks the five-freebie deal from the Blu-ray camp).
Thinking this through, it seems the cuts won't change the fast-moving economics of high def.
The PS3 machine (which plays Blu-rays via its internal drive) more or less matches the price of that format's regular standalone players, making still it an attractive option short-term if you have any use for games. Many of PS3's initial sales were due to Blu-ray.
An Xbox Pro ($399) and HD DVD drive ($179) could in theory be combined solely to deliver HD DVD. But the regular consumer HD DVD machines are cheaper than Blu-ray machines, selling at Amazon for as low as $240
The scenario gets worse if you move to the The Xbox 360 Elite (pictured, $479), which favors movie downloaders with its HDMI output and 120GB hard drive but still needs the add-on unit for HD DVD. (The Elite pipes in high-def films at a good price point via Xbox Live's Marketplace, however. I want one.)
Seems to me that the Xbox outboard HD DVD drive no longer makes sense for gamers, either.
Try a $70 price cut, guys.
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Its a supply and demand world. Price cuts come when they need to get an edge on a competitor
Posted by: Brandon | March 16, 2009 at 07:00 PM