The announcement was made today at ComicCon International 2007 in San Diego. The company also announced promotions for their Xbox LIVE service that will be tied into upcoming HD DVD releases.
Xbox LIVE will offer the movie 300 on demand in HD starting August 14. Xbox LIVE members will also be able to download the pilot for the hit television show Heroes in high definition before the box set for the first season is released next month.
With Sony's Playstation 3 selling well after a temporary price reduction, plus the announcement that rental giant Blockbuster will carry Blu-ray exclusively, and a similar announcement from retailer Target expected today, this may not make any difference in the success of the HD DVD format.
The good news for HD DVD backers is that Wal-Mart, which many people feel will ultimately decide the format war, isn't choosing sides. Many analysts believe that once the retail chain introduces a model of either cheap enough for the average consumer to buy, the format war will be over. Others aren't convinced that the general public has any interest in either.
Despite rumors of Wal-Mart plans to sell a cheap Chinese HD DVD player earlier this year, Wal-Mart has consistently denied that a deal for such an item is being planned.
Microsoft claims that the Xbox HD DVD Player has already broken the $200 barrier, but this claim is only true if you don't factor in the cost of either an Xbox 360 or PC capable of hi-def playback.
Source: Microsoft