Microsoft issued a statement that it is discontinuing the XBox 360 HD DVD player.
This comes at no surprise after Sony's Blu-ray format won last week.
Microsoft could get a bit more official on this topic, as they have a responsibility towards their customers who paid $200 for the now worthless HD DVD drive.
In the statement there is no word about Blu-ray plans, only that Microsoft continues to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room.
We will see if the Xbox 360 is just a Halo 3 gaming device or if Microsoft can catch up to Sony's PS3 again in the living room media hub discipline.
The good news is that they'll still continue to support and repair your player based on the standard warranty, but chances are you'll get little future use out of that player now that no movies will be made for it.
What's still unclear is whether there will ever be a Blu-ray add-on to the 360 that's cheap enough to sell the Xbox + Blu-ray package at a comparable price to the PS3 ($399ish).
We're guessing that something along these lines will hit within the year.
Source: Gizmodo