When Toshiba decided to fold and drop HD DVD, Microsoft did the same thing with its external HD DVD player for its video game console Xbox 360. It didn't take long before stories about a blu-ray player started to appear, and they are further substantiated by industry sources cited by DigiTimes. They say that Lite-On is developing a built-in blu-ray drive for the Xbox 360. Shipments will start in the second half of 2008 and the drive will be a key component of the next generation Xbox 360 from Microsoft.
In a related story, it is said that Microsoft may be selling the new units at a price which is below production costs. A common way to do business on the video game market. The price of just the blu-ray drive may be as high as $100, five to six times higher than the DVD player price.
How Sony will combat Microsoft's new blu-ray Xbox 360 we don't know, but the same sources state that partners choosing to work with Microsoft may have trouble getting a hold of blu-ray components.
Considering the recent price drops and new bare alternatives from Microsoft, it seems it may be trying to offload old systems in favor of a new one coming later this year.
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