At E3 last week, Microsoft once again discussed its plans to launch a HD-DVD component for the Xbox 360 later this year, but did not reveal any further information about the price of the unit.
Currently, the Xbox 360 retails at £279 in the UK, with the Core System (which comes minus a hard drive) going for £209. The 60GB model of the PlayStation 3 is expected to cost between £399 and £419 when it arrives in late November.
Microsoft's alleged comments to UK retailers seem to suggest that the HD-DVD peripheral, which allows playback of high definition movies using Toshiba's next-generation DVD standard, will be priced below £130 - making an Xbox 360 and HD-DVD player bundle a potentially attractive option come Christmas.