In a fairly unsurprising move, Microsoft has announced that it will no longer make the HD DVD add-on drive for the Xbox 360 console, though it will continue to provide warranty support for those who already own one.
Microsoft claims that the decision won't affect its video game business, presumably because the add-on drive was never used to deliver games. Additionally, the company is looking at ways to make its HDi interactive and VC-1 video encoding technologies available on other platforms.
"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," Blair Westlake, a corporate vice president of Microsoft's media and entertainment group, said in a written statement.
Toshiba, who made the drive for Microsoft, estimates that around 300,000 people own the unit. Expect a major price crash as stores sell off excess stock.
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