After much speculation around the subject, Microsoft has revealed that it plans to release an external HD DVD drive for the Xbox 360 later this year. Microsoft Corp. Chairman and Chief Software Architect Bill Gates revealed the plan during his keynote speech at CES. He didn't give any details about the price of the add-on or any more details on when it will be available. Microsoft's decision to use the existing DVD format for games has been frowned upon by many, considering the PS3 console will use Blu-ray Disc technology.
Source:
Microsoft
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