Microsoft will drop its HD-DVD external players for the Xbox360 and slash the price of its current stock after Toshiba announced last week is was giving up on the format.
The Redmond, Washington firm said it will cut the price to $49. The drive is sold separately from the Xbox 360 game console, which includes a regular DVD drive.
Microsoft was one of Toshiba's first partners when the technology made its debut. Sony's rival technology, Blue-Ray, endured during the past two years, securing support from most of the top media companies.
The Sony high definition technology standard was also included in the company's Playstation 3 game consoles, which contributed to its ultimate success.