Retail sources have revealed that the Xbox 360 HD DVD add-on will retail for under £130.

Retail sources have revealed to GamesIndustry.biz that Microsoft intends to launch the HD DVD add-on unit at a price which keeps the console and add-on below that of the PlayStation 3. The comments which come from unnamed sources, suggest that Microsoft will launch the add-on at under £130, effectively making HD DVD equipped Xbox 360s £410 (£340 for HD DVD equipped Core Pack Xbox 360s).

It's worth remembering that the HD DVD add-on will be for movies only, with games remaining on standard DVD media. Microsoft hasn't said much about the add-on, but did release a number of images of the unit at E3 last week. The major concern (and one that potential lower price, HDMI-less PlayStation 3 console owners also share) is the lack of HDMI output. While not officially confirmed as being absent, without HDMI the planned copy protection would force the video output to be scaled down to 480p, effectively making the device worthless.

With HDMI being one of the hottest terms in gaming at the moment, we'll be sure to keep you up to date on any developments in the Xbox 360 HD DVD add-on and PlayStation 3 saga.

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