To the surprise of no one, Microsoft officially announced Monday that it would withdraw from HD DVD, ceasing production of its Xbox 360 HD DVD add-on, effective immediately.
One of the format's key technology backers, Microsoft played a leading role in evangelizing HD DVD to the early adopter community from the format's earliest days. It also famously launched the Xbox 360 HD DVD add-on in late 2006 in an effort to help combat Sony's Blu-ray enabled PS3.
In a statement issued Monday, the software giant said it would continue to provide standard product and warranty support for all Xbox 360 HD DVD Players in the market. The company also dropped the MSRP on its remaining stock to a record-low of $49.99.
The full text of Microsoft's statement follows below:
As a result of recent decisions made by Toshiba, Hollywood studios, and retailers, Microsoft plans to withdraw from HD DVD. Xbox will no longer manufacture new HD DVD players for the Xbox 360, but we will continue to provide standard product and warranty support for all Xbox 360 HD DVD Players in the market. As we stated earlier, we do not believe this decision will have any material impact on the Xbox 360 platform or our position in the marketplace. 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.