CES: External HD DVD drive for Xbox 360
It is notable that he specified "movies" and not gaming. As discussed earlier, if Microsoft offers two tiers of games, DVD9 and HD DVD, it could alienate the consumers who do not own the external drive and aggravate developers whose next-gen development budgets will be stretched as it is, without multiple console variations. This external drive is Microsoft's response to Sony's relentless Blu-Ray marketing, an effort to remove this contention from the next-gen purchasing decision. Will a low priced, next-generation DVD player really help sell consoles? Since Microsoft still has to ensure that HD DVD wins the console war, there are clearly plenty more battles left in this war.