Microsoft Abandons HD DVD drive for Xbox 360

After Toshiba Corp. conceded defeat to Sony Corp.'s Blu-ray in the high definition DVD format war, it is now the turn of Microsoft Corp. to do the same. In an announcement on Saturday, Microsoft said that it will stop making HD DVD players for its Xbox 360 video game system.

The Redmond-based software maker however added that it would continue to provide standard warranty support for its HD DVD players.

The Microsoft HD DVD video player drive, which was sold as a separate $130 add-on for the Xbox 360, was intended as Microsoft's answer to Sony's PlayStation 3 console, which contained an integrated Blu-ray Disc drive. According to last week’s estimates by Toshiba President, Atsutoshi Nishida, about 300,000 people owned the Microsoft HD DVD video player drive.

Blair Westlake, corporate vice president of Microsoft's media and entertainment group, said in a written statement, "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."

Microsoft is just the latest top-tier tech company to relinquish the HD DVD optical disc format. Microsoft was one of the most prominent supporters of HD DVD along with Toshiba, Intel, and NEC.

After Warner Bros. Entertainment, Best Buy, Wal-Mart and Netflix decided to support Sony’s Blu-ray, the fate of HD DVD was sealed. Toshiba Corp., the principle HD DVD developer, came out last week and officially surrendered to Blu-ray.

The biggest patron of Blu-ray, Sony, now stands assured to become the standard bearer of high definition video mostly because of its strategy of including Blu-ray playback capability into its Playstation 3 gaming console.

Microsoft has said that the decision to stop selling HD DVD players won't have a material impact on its video game business. Also it's still not clear if Microsoft now plans to make an attachable Blu-ray player for the Xbox 360.