The Warner Bros. decision earlier this year to drop support of HD DVD in favour of Blu-ray was shortly followed by Toshiba's decision to cut prices of its HD DVD in an effort to gain market share for the format.
Microsoft is now following suit, with plans to lower the price of its HD DVD player accessory for the Xbox 360 from $249.95 to $129.95 in Australia and New Zealand.
The HD DVD player will also come with Universal Pictures film "King Kong" on HD DVD and an Xbox 360 HD DVD remote.
"We are working with individual retailers to have the new pricing available as soon as possible," the company said in a statement.
See: www.xbox.com.au