Microsoft Bails on HD DVD

Microsoft has announced that it will no longer manufacture HD DVD players for the Xbox 360. As more and more movie studios threw their support behind Blu-ray technology, HD DVD certainly seemed to be circling the drain. Toshiba’s decision to stop manufacturing HD DVD players and recorders was yet another nail in the coffin. And […]

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Microsoft has announced that it will no longer manufacture HD DVD players for the Xbox 360.

As more and more movie studios threw their support behind Blu-ray technology, HD DVD certainly seemed to be circling the drain. Toshiba's decision to stop manufacturing HD DVD players and recorders was yet another nail in the coffin. And now, just to completely throw our metaphors into a blender, Microsoft's fat woman has decided to sing:

As a result of recent decisions made by Toshiba, Hollywood studios, and retailers, Microsoft plans to withdraw from HD DVD. Xbox will no longer manufacture new HD DVD players for the Xbox 360, but we will continue to provide standard product and warranty support for all Xbox 360 HD DVD Players in the market. As we stated earlier, we do not believe this decision will have any material impact on the Xbox 360 platform or our position in the marketplace.

Now, armchair analysts, it's time for you to tell me what effect, if any, this news will have on PS3 and 360 sales.