Microsoft HD DVD Add-on Now $179

Aiming to stay competitive with Sony, Microsoft cut the price of its HD DVD add-on for Xbox 360 by 10 percent, as well as including five free movies through a mail-in offer.

The free disc offer is similar to an offer that Toshiba has been using to promote its own set-top HD DVD players. The price will be dropped in the United States from $199 to $179 USD beginning August 1, and the promotion will run from that date to September 30.

In addition, Microsoft announced content deals surrounding the HD DVD release of "300" on Warner Bros. and "Heroes: Season 1" through Universal, with content to be made available through the Xbox Live Marketplace.

"300" will be offered on demand in high-definition beginning August 14, while Universal will make the pilot episode of Heroes free for a limited time in addition to other content surrounding the show.

"From the beginning, we set out to offer Xbox 360 owners an unrivaled high-definition experience," Microsoft Entertainment and Devices division chief Jeff Bell said in a statement.

Microsoft's price cut is not at all surprising: Sony lowered the price of the Blu-ray capable 60GB PS3 in the US to $499 USD to clear out its remaining inventory, and Toshiba has been cutting the prices of its HD DVD players for several months now.

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