It's been coming for a long while now, and the other shoe has finally dropped. Microsoft says they will no longer make HD-DVD part of their plans and they won't continue to produce the HD-DVD player as an add-on for the XBox 360, effectively driving the last nail into the DVD format wars once and for all.
There's even speculation that Microsoft will begin production of a Blu-Ray player, though that is strictly rumor at this point. They might also just concentrate on the digital download service for a long while and let the fallout do what it will. Still, who could have seen this coming even a few short months ago?
Microsoft has dropped the price of the HD-DVD add-on to $50, while supplies last.
Next Generation: Microsoft Drops HD-DVD