Microsoft: 360 HD-DVD drive will be cheapest

Major Nelson's podcast reveals that the next-gen console's external high-def DVD player will be the least pricey model on market.

While most hardcore gamers believe it's the games that will win the next-gen console war, others believe it will come down to something entirely different--movie playback. Sony has been banking on the PlayStation 3's integrated Blu-ray drive to move its console, and Microsoft has countered with an external HD-DVD drive, set to go on sale later this year.

The high-end models of the PlayStation 3 and Xbox 360 are $599 and $399, respectively, but the PS3's price includes the system's Blu-ray drive. Microsoft still has not yet announced a price for the external HD-DVD drive, and its cost could sway the next-gen race.

On the most recent episode of the podcast from Major Nelson, aka Larry Hryb aka Microsoft's director of programming for Xbox Live, Hryb had a few members of the HD-DVD team on his show for an interview. Though they didn't reveal an actual monetary figure for the drive, they did drop a few hints.

Albert Penello, Microsoft's director of global marketing, had this to say about the drive's price. "Here's the truth, we're still thinking about it. Here's what I can tell you for sure, it's going to be the cheapest HD-DVD player you can buy...without a doubt, when it comes out," he said. "Everybody is very enthusiastic with the direction we're going. There's still a few surprises left. I don't want to spill the beans yet, but I think people are going to think it's a great value."

Currently, only a few HD-DVD players are on the market, and they bottom out at just over $420. However, the Xbox 360 external HD-DVD drive won't require all the hardware of a stand-alone HD-DVD player (that will be provided by the Xbox 360), which should cut into its cost.

Penello went on to discuss Microsoft's strategy with movie playback on its next-gen console. "Xbox has always been about choice. It's always been about 'How do you want to game? How do you want to get online? How do you want to communicate with people?' What I'm excited about is that now we're going to say, 'How do you want to pick your next-generation DVD format?' We're not forcing consumers to buy something that may be obsolete, or forcing them to spend a lot of money on something they don't want." He added, "We're not betting our whole console on an unproven media format."

306 Comments

  • JoePiervincenti

    Posted Aug 21, 2006 12:08 pm GMT

    Glad to hear this! Microsoft is taking a very smart approach to this! Especially with Sony, and their history with new disc types. Microsoft is smart to be cautious about this.

  • noonlight

    Posted Aug 21, 2006 2:51 am GMT

    4quarters said: 'xbox360 idiots!!........ PS3 60gb w/blue-ray AND wi-fi built in $599.......xbox360 premium $399 + external wi fi adapter ($99.99), external hd-dvd player ($199.99 ?), AND 5 years (system life) of xbox live ($49.99 times 5) $250.00 .....TOTAL..$849.99 NOW WHO PAID TO MUCH???? PS3 haters are idiots!!!!!'

    Since when do you need a wifi adapter, external hd-dvd player or xbox live to play games? and the cost of xbox live represents how much better it is than having some ad-hoc system

  • indy64

    Posted Aug 21, 2006 12:28 am GMT

    I agree and disagree with all of you. Why not have the best of both worlds (and the bad?). I will have both systems in my home, but I do think the 360 has an edge, just a little one. Cheers.

  • judge__judy

    Posted Aug 20, 2006 9:11 pm GMT

    'Still not a patch on the PLAYSTATION3.
    Still can't find a single reason why i would want an XBOX360.
    They're just trying to bluff that they have an advantage over the PS3 when the XBOX360 has no advantage whatsoever.'

    Ahh yea the price. Who wants a movie player on their console anyway

  • Zeppelin1988

    Posted Aug 20, 2006 7:48 pm GMT

    if you think about it comparing the prices with ps3 and xbox360 is kinda dumb for those who already have a 360. Becuase some people already have 360's and dont have to worry about paying a little extra for a HD DVD. lets face it... most people would of already got theyre money back by working. ps3 is still a little too dear for me $$$. I'll just have to wait thats all. only want mgs anways.

  • badboyrhys

    Posted Aug 20, 2006 5:14 am GMT

    it may be cheaper than a stand-alone hd-dvd playa but u will need a xbox-360 to play it this will all add up in the end.

    cum on sony

  • jackassultima

    Posted Aug 13, 2006 5:59 am GMT

    Still not a patch on the PLAYSTATION3.
    Still can't find a single reason why i would want an XBOX360.
    They're just trying to bluff that they have an advantage over the PS3 when the XBOX360 has no advantage whatsoever.

  • _Sam_

    Posted Aug 11, 2006 12:57 pm GMT

    That's great

    (sorry didn't write up a long comment like other people )

  • metdevthegamer

    Posted Aug 9, 2006 4:35 pm GMT

    No brainer to make it as cheap as possible (hey Sony, hint hint).

  • 69GOD69

    Posted Aug 9, 2006 4:32 pm GMT

    4QUARTERS MAN, I HEAR YA

  • 4quarters

    Posted Aug 9, 2006 3:53 pm GMT

    xbox360 idiots!!........ PS3 60gb w/blue-ray AND wi-fi built in $599.......xbox360 premium $399 + external wi fi adapter ($99.99), external hd-dvd player ($199.99 ?), AND 5 years (system life) of xbox live ($49.99 times 5) $250.00 .....TOTAL..$849.99 NOW WHO PAID TO MUCH???? PS3 haters are idiots!!!!!

  • dm235

    Posted Aug 9, 2006 2:41 pm GMT

    In response to altoids,

    Even though the actual manufacturing process of making Blu-ray discs may be more expensive, the extra storage will allow publishers/developers to store all of the localized versions on one disc. This means that they won't end up with warehouses full of European discs and a shortage of Japanese discs because the demand was different from what they expected. This is definitely a cost savings that must be considered. Also, if Blu-ray does take off, the cost will obviously drop.

    Also, with regards to DRM (actually the ICT), Hollywood studios have informally agreed not to use it until 2010 (possibly 2012), so as not to anger any early adopters. However, they can decide at any time to start implementing it if they want. Also, the movies with the ICT will work on non-HDMI connections, but they will be downconverted to a lowly 540p resolution, making the whole idea of having a HDTV rather pointless.

    Either way, I think I'd rather have something that supports HDMI than something that does not. Given that the last few generations of consoles have been around for over 6 years each (although the XBox only lasted 4), this means that we will probably run into this near the end of this generation of consoles.

  • J_Bigg

    Posted Aug 9, 2006 12:40 pm GMT

    TO Cyberjedi

    Americans invented videogames remember? Go back to the roots and read the history. Get your mind right.

    Let us all stop living in the past and play games together outside of the polictics and opinion.

  • SavoyPrime

    Posted Aug 9, 2006 12:29 pm GMT

    It better be cheap! It's external!

  • SeaMouse

    Posted Aug 9, 2006 12:11 pm GMT

    Hmmm, I'd rather have a console with a built-in HD player. Much tidier in my lounge! A HDMI output would be nice too. Oh well.

  • Fuguthemush

    Posted Aug 9, 2006 11:22 am GMT

    Cyber Jedi
    "MS is from US, i am born and raise in Japan.

    They bombed Hiroshima just to experiment with A-Bomb.

    I'll never trust American companies ever again.....Long live Sony and Nintendo!!"

    "We have moved way past this, so should you!!"

    Obviously you haven't, or you wouldn't be throwing around such racist statements.

    Please. Just stop posting. Better the Internet by allowing them not to see your racist, inane babbling.

    Also, you should stop visiting GameSpot. Wouldn't want any of that American propaganda getting to your superior Japanese mind, would we?

  • CyberJedi

    Posted Aug 9, 2006 10:45 am GMT

    Deimos27

    look at the bigger...

    That is in the past, we have moved on and seek to better other people lives!

    That's why we created video games and consoles for the enjoyment of others.

    Lt. Adnan? He fought on what he thought was his land eventhough Singapore was long colonise by British, who stoled through crooked agreement with the exile Sultan Abdullah of Johore. Yet, in Singapore history books mentioned little of this fact. Alas, it was Stamford Raffles who founded Singapore!!


    Through the ages, war are fought and won by those who felt they have a better vision of things ought to be. History later are written by those who have conquered others.

    We have moved way past this, so should you!!

    If you are still pissed, play with your beloved HALO, which is typical of an attitude of shoot first, then..perhaps later we hide behind United Nations!!

  • Real720

    Posted Aug 9, 2006 10:39 am GMT

    This is definitely good news!

  • ocdog45

    Posted Aug 9, 2006 10:36 am GMT

    good stuff microsoft

  • rgjj

    Posted Aug 9, 2006 10:20 am GMT

    hey how do we compare or consider formats we've not seen used or even have the ability to use. i go blockbusters n i aint seen no hd dvds or blue ray nor in virgin hmv etc etc!!! long live games and gaming!!!! and stop usin gamers to push out technologys which'll just leave friends say u "gotta whach it at mine as u got blue ray n this is hd" or if where intoxicated realisin to late!!!

  • Deimos27

    Posted Aug 9, 2006 10:11 am GMT

    [This message was deleted at the request of a moderator or administrator]

  • gorilla_killa

    Posted Aug 9, 2006 10:02 am GMT

    which one is better a HD-dvd drive or Blu-ray drive

  • Flame_Co

    Posted Aug 9, 2006 9:22 am GMT

    1st off, I think that both the Blu-Ray and HD DVD are waste of money, unless you are using it for movies. As long as you don't waste space w/ pointless crap, the 9G is a great size for games. Oblivion, which has great High-Def graphics and a massive world with thousands of NPC's, Creatures, and areas fits on ONE DVD DISC!

    I think that we'll be seeing more expensive games that have the same quality. Blu ray discs along w/ HD dvd's obviously will cost more, but will still use the same amount of space. Unless Sony or Microsoft pln on having hours of pre-rendered vids, they're wasting their time.

  • Maquis_UK

    Posted Aug 9, 2006 8:57 am GMT

    um im not quite sure how age is an indicator of years using micro$haft products. wow you're 36 who knew lol im 33 myself, what's your point? maybe you're old enough to make up your own mind then eh, so then why does my considered opinion fluster you so much? i hate m$ because they always half-deliver on the promises they make. they are evil and id rather use Linux and an Opera browser. enjoy your expensive software & hardware "solutions". fanboy? what just cos i havent listed the mega drive, psone and ps2 games ive had?

  • urluckyday

    Posted Aug 9, 2006 8:57 am GMT

    yay Microsoft...now I've gotta get a 360 to take advantage of that...wait...it'll be cheaper to get a $420 player instead of getting the 360 and a player...hm...but then again, it'll be cheaper than a PS3...ah forget it...I'm getting a Wii.

  • CyberJedi

    Posted Aug 9, 2006 8:50 am GMT

    [This message was deleted at the request of a moderator or administrator]

  • qiwihead

    Posted Aug 9, 2006 8:41 am GMT

    I'm almost positive that the premium PS3 has HDMI, but not the cheaper model. Lack of HDMI is one of the few issues I have with my 360, which otherwise is a very fine system. Especially if I end up getting the HD drive to watch movies, not having HDMI will kind of suck. But from what I've read, HDMI doesn't look that much better than component, so I might not notice the difference anyway.

  • altoids

    Posted Aug 9, 2006 8:24 am GMT

    One thing that worries me, and I would love to be enlightened by other posters, is that nowhere to be seem is any discussion of ICT (Image Constraint Token) or AACS (a form of Digital Rights Management). Theoretically, once studios start to enforce this protection on their discs (be it HD-DVD or Blu-Ray), anything that's not transmitted over HDMI will be down sampled to 540p.

    Neither the base PS3 or the add-on 360 HD-DVD player include HDMI outputs. This could be a problem in a few years. I would hate to buy the add-on now and find out later that I can't output certain movies to 1080i/1080p because of some stupid AACS restriction. Damn studios.

  • qiwihead

    Posted Aug 9, 2006 8:16 am GMT

    Maquis_UK, the storage media has nothing to do with backward compatibility. The processor is what matters with compatibility. The PS1 and PS2 use the same media, but the only reason the PS2 is fully backward compatible is that they installed a PS1 processor in the PS2. M$ was unable to do that with the 360 because it would have taken up too much room, and possibly also because of cost.

  • daveg1

    Posted Aug 9, 2006 8:14 am GMT

    sound great i'l be getting one

  • anthony_basic

    Posted Aug 9, 2006 8:05 am GMT

    [This message was deleted at the request of a moderator or administrator]

  • AsylumEscapee

    Posted Aug 9, 2006 7:47 am GMT

    Why does every bit of news on this site start a console war with you people? The news isn't even about games. Btw, I see a lot of you people are in an uproar about microsofts labeling this add-on as the cheapest HD-DVD player. "OH! But you need the 360 to use it! If you add the cost of the player to the cost of the add-on, it's no longer true!" Well, no shin, sherlock. We all figured this out. It's not decieving if its obvious.

  • jerrt

    Posted Aug 9, 2006 7:40 am GMT

    [""LosDaddie:
    Here's a nice reality check for PS3 Fanboys: Every console priced over $300 has failed.""}

    wait i'm confused how much did the 360 cost?

    that should technically say "...check for ps3/360 fanboys" me thinks.

    also, what did the ps2 cost when i came out? think about what you type....

  • wenbin09

    Posted Aug 9, 2006 7:32 am GMT

    i hope it's coming out on a reasonable price though!!!

  • hardcoreicon

    Posted Aug 9, 2006 7:31 am GMT

    according to some fool over there Sony doesn't own blu-ray??? maybe you should get your facts straight

  • hagame

    Posted Aug 9, 2006 6:37 am GMT

    how can it be the least pricy when the cost of a 360 itself (which you need for the HD-DVDand is near to the price that stand alone HD players will be by years end.) I'm sure the drive is the cheapest on the market, but you can't use the drive alone as a stand alone player. Nice Marketing Speak there MS.

  • nev70

    Posted Aug 9, 2006 6:32 am GMT

    Maquis_UK
    well i,m 36 years old work it out for yourself fanboy

  • Maquis_UK

    Posted Aug 9, 2006 6:25 am GMT

    yo Nev, if using microsoft products for more than 10 years doesnt qualify me to have an opinion, then what does? everyone i know who had a 360 traded it in. no decent games, you see. how long have you used m$ "products" ? since xbox maybe? five years or so. perhaps i am more qualified to comment than you..?

  • scorp76

    Posted Aug 9, 2006 6:20 am GMT

    A few things we should remember:

    Sony does not own the Blu-Ray format. The chose it for the PS3 because of its capacity of around 25gig per disc (double for dual layered)

    Sony believes that next gen games will require more space per disc. High def graphics require more space to write on the disc.

    HD-DVD disc max out 13 or 14 gig per disc. So a long and high def graphic game won't fit on 1 disc. That's what Sony is trying to eliminate- the limits on what the size of a game can be.

    Sony believes that with the power of the PS3 it will require more space to produce the best games possible

    All in all we will have to wait and see what the developers and programmers can do with the technology at there disposal. No matter what format, IF A GAMES SUCKS, IT SUCKS PERIOD!!!

  • Maquis_UK

    Posted Aug 9, 2006 6:18 am GMT

    yes, its broken barriers... a whole new frontier of excessive in-game advertising, the valuing of horsepower over style and subtlety, denying backward compatability EVEN THOUGH THE SAME STORAGE MEDIA IS USED, online "security" that gets hacked in no time at all, over-priced over-hyped systems that nobody wants cluttering up shop shelves everywhere, an extra 20 quid on most games, ushering in a "new-generation" although the last one was nowhere near finished and only one company stood to gain, small-minded thuggish idiots hogging all the online servers and mercilessly abusing any n00bs brave enough to try halo2... shall i go on? well you did ask.

  • LosDaddie

    Posted Aug 9, 2006 6:17 am GMT

    Here's a nice reality check for PS3 Fanboys: Every console priced over $300 has failed.

    I am so happy MS gives gamers a choice in what they want in a console. Good job, MS!

  • nev70

    Posted Aug 9, 2006 6:13 am GMT

    BlackdogGT
    Marquis_uk spends all his time slagging off ms dude though hes never had a ms console? just nintendo !

  • BlackdogGT

    Posted Aug 9, 2006 5:57 am GMT

    You can't call BS without referring to Sony in the same sentence, Maquis_UK.

    And what other "unsubstantiated" promises has MS broken with the 360, dude? Microsoft has, without a doubt, helped the industry merge into a new landscape for gaming with the Xbox brand.

  • Sanguis_Malus

    Posted Aug 9, 2006 5:52 am GMT

    I have HD TV (NOT HD READY) and i do live in the UK . Learn the difference and what is required before commenting Dav_id83 (no dissrespect intended lad). Let me just say that when playing Oblivion or Prey on my 360 it looks divine ! HDTV is the way to go gamers believe me, ( just remember to configure the settings in the 360 system folder to HDTV & the switch on the cable ).

    Also the article CLEARLY stipulates that any intended add on released by Microsoft would work in conjunction with the Xbox 360 to provide HD quality. Clearly this will work alongside my HDTV and I'm in business !

    I for one will be getting a PS3 as well, I like both consoles and I have the money for which I am grateful. However, i understand that some people have budget issues and the whole HD-DVD vs BluRay issue is proving frustrating.

    It has to be personal choice ( to a certain extent , NOT IF SONY HAS ITS WAY ! ). If any of the said formats do disapear it will be a few years yet ! What we do know is that the PS3 has BluRay so if you purchase the premium package with the HDMI port then you have you're player right there.

    Remember guys, WE LOVE GAMES!!! I equally feel frustrated at the whole issue but stand alone players will come down in price eventually on both formats. I love my dvd's but for now I am happy watching them through my normal dvd player on my HDTV LCD. I'm already enjoying my games in HD quality !!! Besides, HD Dvd's and BluRay films are £20 and £25 respectively. I'm not ready to pay that.

    You guys that feel the whole console / brand bashing issue is stupid, I agree with you. Personal choice, plain and simple. The individual must choose which is right for them. Don't make impulsive purchases, weight up all the aspects before you part with you're cash.

    REMEMBER GUYS, FIRST AND FOREMOST ITS ABOUT GAMES !

  • Jypson44

    Posted Aug 9, 2006 5:51 am GMT

    Preach the good word *Alamo313*

  • Maquis_UK

    Posted Aug 9, 2006 5:41 am GMT

    m$ also insisted that the 360 would sell 1 billion. big unsubstantiated promises = scared talk. didn't they also insist that without cracking the asian market, 360 would be a failure? i smell more bull.

  • altoids

    Posted Aug 9, 2006 5:28 am GMT

    In response to Andron666...

    I believe when people use the price argument on HD-DVD versus Blu-Ray, there's been some confusion. The media cost is more expensive for Blu-Ray from the developer and movie studio perspective. I remember reading somewhere that HD-DVD required more of an "upgrade" to existing pressing facilities, whereas Blu-Ray would require a complete over-haul and new pressing equipment. Format wars ultimately delay media adoption, it just upsets me that promoting its own media format has become part of Sony's gaming strategy versus seeking the best value for developers and gamers.

  • faizali86

    Posted Aug 9, 2006 4:56 am GMT

    i'll wait and see which format actually wins in the long run. i dont want to be stuck with a dvd format which isnt being used by anyone.

  • Dav_id83

    Posted Aug 9, 2006 3:47 am GMT

    iT'S GOING TO BE THE BE CHEAPEST PLAYER OUT THERE!!!

    Does that mean it's going to be the cheapest in quality for movie play back and hardware also. Hmmmm we'll have to wait and see on this one I must say it looks cool thou.

    Mind you I wouldn't be buying it, my mates won't either for a start you need a HD-DVD TV and currently the ones in our stores in the Uk. Are only HD-DVD READY for nearly £1000 I'd rather spend it on a new PC build thanks.

  • Alamo313

    Posted Aug 9, 2006 3:33 am GMT

    I'm not trying to get at anyone here but guys, it really doesn't matter to the consumer which console wins! Yeah you're taking a risk if blu ray fails with the PS3 and a bit less of a risk if HD fails with the 360 (as it's external and you don't ahve to get it, as well as the fact that it will probably be cheaper). But remember these are gaming machines and in that sense it doesn't matter, why do we care which console is better, why do we get at each other's throats about them. Buy the console which YOU think is better for you, the one with the games you enjoy most, the one that gives you what you want at a value you also accept. For me it's the 360 for you it might be Wii for someone else PS3 for someone else all 3! But as long as there's competition in the market why should we care who gets what!
    Just remember this as far as movies are concerned you're taking a risk with the PS3 if blu-ray fails and a risk with HD dirve if HDDVD's fail, but for gaming just get the one you like best!

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