Microsoft adds HD DVD to its Xbox

  • Associated Press
  • Wednesday, September 20, 2006 9:00pm
  • Business

TOKYO – Microsoft Corp. is introducing an external high-definition DVD player for the Xbox 360 video game console to match the Blu-ray disc functions of Sony Corp.’s upcoming PlayStation 3. The software maker also announced Wednesday it will launch the Xbox 360 in India this week and in Africa next week.

The rollout plans come as the company tries to shore up sales ahead of the arrival later this year of next-generation machines by its two top rivals – Sony and Nintendo Co.

The basic Xbox 360 doesn’t come with high-definition DVD capability. The new Microsoft peripheral, to be launched in Japan on Nov. 22, is based on the HD DVD standard, a rival technology to the Blu-ray format Sony is using for the HD player built into its anxiously awaited upgrade to the PlayStation line.

The attachment will cost 19,800 yen ($170) in Japan, bringing the combined cost of the basic Xbox 360 and the HD DVD player to 49,600 yen ($420) – compared with 59,800 ($510) for the basic PlayStation 3 in Japan. The higher-end Xbox plus the HD DVD player will cost 57,700 yen ($490). Sony has left it up to retailers to set the price for its higher-end PlayStation 3.

In choosing Japan for the launch of the HD DVD add-on, Microsoft is testing a market that is one of the world’s biggest but holds a deep allegiance to homegrown Sony. Microsoft has said it plans to release the HD DVD in the United States and Europe by the end of the year. Shane Kim, corporate vice president of Microsoft’s game studios division, said the company plans to announce pricing and availability in those markets soon.

Microsoft has been looking for ways to boost sluggish sales in Japan. Earlier this month, the company’s Japanese unit said it was set to release a cheaper, bare-bones version of the Xbox 360 to boost flagging sales ahead of the PlayStation 3 and Nintendo’s new Wii system.

The low-end version, already sold as the Xbox 360 Core System in the United States and Europe, will be released Nov. 2 and priced at 29,800 yen ($256) – about 10,000 yen ($86) less than its standard version.

As of earlier this month, just 158,000 units of the Xbox 360 had been sold in Japan since its release late last year, according to Enterbrain Inc., a market researcher. About 5 million units have been sold worldwide in the same period.

Microsoft also said there will be 110 game titles available for the Xbox 360 in Japan by year’s end, addressing a common complaint by video fans who said PlayStation offered more choices.

“It’s an uphill battle. We’ve always known that Japan would be a challenging market,” Microsoft’s Kim said. “But I think we’ve really changed our strategy this time around.”

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