c|net reports that Microsoft has shown off their HD DVD solution for their Xbox 360 gaming console. Kevin Collins from Microsoft showed off the peripheral to attendees of the DVD Forum in Los Angeles. Mr. Collins showed off the peripheral’s HD DVD functionality with The Phantom of the Opera. All the audio and video processing are done inside the 360, and the video is put out on the Xbox 360’s current outputs. Hmmm. I just read the article I linked to below again, and I don’t see that mentioned. I thought for sure I read that somewhere, because I was gonna make a point anbout the lack of HDMI and therefore potential problems with any HD DVD titles that choose to implement the Image Constraint Token. Oh well. Does anyone have a reference for this?

HDMI aside, Mr. Collins also pointed out that this peripheral will be the cheapest way for Xbox 360 owners to get an HD DVD player. In other words, he’s saying that it’ll cost less than the the cheapest HD DVD player out there, which is currently Toshiba’s HD-A1, which I saw at Amazon for $449. So Mr. Collins isn’t giving away any pricing news, it seems. I have to admit that I am very curious to see what price Microsoft will sell this peripheral for. We know that Toshiba is taking a loss on every HD DVD player it sells (or so the rumours go). On the other hand, Microsoft doesn’t need to include nearly as much stuff in their HD DVD add-on for the 360, because the 360 itself will do a lot of the processing. So Microsoft is basically selling an HD DVD transport, which is fine. My guess is that Microsoft will want to keep the price of the Xbox 360 plus HD DVD add-on peripheral to be less than the $600 PS3. Pretty good huh? That’s why I get paid the big bucks! Anyway, such a pricing model which means that the peripheral would have to go for $200 or less. Anyone willing to bet against me on this?

Microsoft shows off HD DVD drive for Xbox
Xbox 360 HD DVD add-on unveiled