Microsoft senior program manager Kevin Collins demonstrated the company’s HD-DVD offering by playing a copy of “The Phantom of the Opera” on the external drive, noting that all video and audio processing functions take place inside the Xbox 360 unit.
According to Collins, the drive, which Microsoft plans to make available to consumers in time for the holiday shopping season, does not yet have a suggested retail price.
“This gives consumers choice and keeps their cost down,” Collins said.
Microsoft decided to offer consumers an external drive in January, believing that a less expensive external drive would lure wary consumers because they would not have to purchase additional, expensive hardware.
Microsoft director of global marketing Albert Penello vowed that even without a set price point, the company’s external drive would be the least expensive on the market.
"Here's the truth: we're still thinking about it,” Penello said. “Here's what I can tell you for sure: it's going to be the cheapest HD-DVD player you can buy, without a doubt. Everybody is very enthusiastic with the direction we're going. There are still a few surprises left. I don't want to spill the beans yet, but I think people are going to think it's a great value."
According to Collins, a Microsoft internal study revealed that a majority of Xbox owners already own high-definition displays.
While Microsoft has backed HD-DVD with its external drive, Sony has opted to put the competing Blu-ray format inside its PlayStation 3 with an internal movie drive.
Sony plans to release the PlayStation 3 in November.
