Microsoft does not expect sales of its Xbox 360 to be affected by Toshiba's decision to discontinue the development of HD-DVD.
The Xbox 360 supports an HD-DVD addition, exclusively produced by Toshiba, which allows users to view high-definition (HD) content on the console. However, a Microsoft spokesman says: "We do not believe the recent reports about HD-DVD will have any material impact on the Xbox 360 platform, or our position in the marketplace."
In an official press release, Toshiba said it had reviewed its overall strategy for HD-DVD and decided it will no longer develop, manufacture or market HD-DVD players and recorders. "This decision has been made following recent major changes in the market."
Toshiba said it will continue to provide full product support and after-sales service for all owners of Toshiba HD-DVD products. The announcement effectively brings the HD wars between Toshiba and Sony's Blu-ray to an end.
However, Microsoft says its gaming console is in no danger. "As we've long stated, we believe it is games that sell consoles and Xbox 360 continues to have the largest next-gen games library with the most exclusives and best selling games in the industry."
The software giant says it will wait until it has officially heard from Toshiba before it will announce any plans around the Xbox 360 HD-DVD player. "HD-DVD is one of the several ways we offer a high-definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high-definition movies and TV shows directly to their living room, along with playback of the DVD movies they already own."
Microsoft would not be drawn on whether it would start looking at making a deal with Sony to include Blu-ray in an Xbox 360 offering. However, earlier this year, Microsoft had suggested it would look into adding Sony's technology to its product line-up.
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