Microsoft hasn't told us how much the Xbox 360's HD-DVD drive will cost, but they do promise it will be the most affordable way to enjoy high definition DVDs this year. My guess is that we'll see the add-on on shelves in December for about $200. Microsoft's X360 HD-DVD drive is simple, compact, and well-designed. It attaches via a mini-USB to the X360 which is where all the processing for the drive will happen. This should keep the little drive from generating heat. Although Microsoft wouldn't plug in the drive and show us it working for this demo, they told us it is going through QA and being sent home for real world testing with various MS employees now. On the back of the drive are two additional USB ports, so the drive will act as a hub rather than just occupy a valuable USB port on your X360. It also features a tab to add the X360 Wireless Network Adapter. The drive sits either horizontally or vertically which should make adding it to your entertainment center incredibly easy. Right now there is a big question of HDMI connectivity -- an alternative to component connections it's an all-digital audio/video interface capable of transmitting uncompressed streams -- Microsoft said they have nothing to announce, but are considering the possibility.
Until we are actually able to plug it in and power it up that's all we know about this handy little add on. If you're an X360 owner like myself and want to play HD-DVD movies this winter Microsoft seems to have designed the smartest and cheapest way to do just that.