Just like the HD-DVD format, the add-on drive for the Xbox 360 is going the way of the dodo. Microsoft issued a statement to let everyone know they won’t be manufacturing these anymore, but will still support them.
As a result of recent decisions made by Toshiba, Hollywood studios, and retailers, Microsoft plans to withdraw from HD DVD. Xbox will no longer manufacture new HD DVD players for the Xbox 360, but we will continue to provide standard product and warranty support for all Xbox 360 HD DVD Players in the market. As we stated earlier, we do not believe this decision will have any material impact on the Xbox 360 platform or our position in the marketplace. HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room, along with playback of the DVD movies they already own.
Expect a fire sale pretty soon both on hardware and HD-DVD movies. In case you want to own some high def that is 100% obsolete, that is. I’m leaving mine hooked up for a while, at least until I can replace the movies I watch on BluRay.
Source: http://loot-ninja.com/2008/02/24/xbox-360-hd-dvd-add-on-officially-goes-away/
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GDC 2008 Prototype Video Interview: on Xbox 360, Sony PS3 and PC
Microsoft and Toshiba discontinuing Xbox 360 HD DVD drive
Microsoft Drops External HD-DVD Drive for Xbox 360
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