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360 HD-DVD to cost 200 quid

Out in November, says source.

The Premium Xbox 360 won’t benefit from a price cut this Christmas - but instead a HD-DVD and console package is due, spearheading a marketing drive of console bundles available from November.

Retail sources have indicated to GamesIndustry.biz that Microsoft is currently planning to price the standalone HD-DVD drive at GBP 199 (293 Euro), and to package it with two HD-DVD movies. The sources also suggested that Microsoft will bundle the Premium console and next-generation movie player together for under GBP 400 (589 Euro) – and that the price could even be as low as GBP 375 (552 Euros).

Next-generation movie support is considered a unique selling point of the PlayStation 3, but Microsoft’s HD-DVD bundle could retail around GBP 50 (74 Euro) cheaper than Sony’s machine, which features the rival Blu-ray movie format.

UK distributor Gem is already offering Premium Xbox 360s with a copy of Project Gotham Racing 3 and two wireless controllers for GBP 299.

It’s expected an official Premium bundle will be made available in early November, with a newly released triple-A third-party title included.

Microsoft recently reduced the price of the Xbox 360 Core package, after many retailers had already taken a similar intiative.

With the pressure to compete with Sony over the Christmas market no longer a threat for Europe, Microsoft looks set to capitalise with a range of SKUs to help grow its installed base in the region.

Microsoft did not respond to requests for comment.