Owners of the Xbox 360 HD DVD add-on shouldn't go trading them in for $50 just yet. According to Microsoft Game Studios Corporate Vice President "there is still enjoyment to be had" from that defunct piece of entertainment technology.

As part of a Q&A with GameDaily, Kim talked up the features of the outdated add-on, including a library of over 500 HD DVD movies (and growing not growing) available at clearance prices (because they're being cleared out). The drive also lets you have a movie and a game disc in the system at the same time, meaning you can switch from Halo 3 directly to watching August Rush without having to get up! Finally, the HD DVD drive adds two extra USB ports to your 360, meaning you can charge your DualShock 3s that much more easily! Yes, the HD DVD drive is truly a bargain, even without new content. Get yours today!

Major Nelson has informed the populace that the next time one of the surviving members of the defeated HD DVD army watch a movie they'll be prompted with an auto update. No, the update will not magically convert the dead format into a Blu-ray player, sorry.

Instead, the update will add "compatibility improvements with certain titles" and "additional support for network features." Xbox 360 owners without Live can download the update through Xbox.com later this week.

Mega-chain Best Buy is sending $50 gift cards to customers who bought HD DVD players or attachments from its US stores prior to Feb. 23 (coincidentally, for our readership, the date Microsoft declared the format dead to the company). CNN reports most customers won't have to do a thing to receive the card as they'll be identified through the Reward Zone program, service plans or online purchases. If you're a customer who won't be identified in this manner, just grab a receipt (you do keep those, right?) or provide your credit card info to the company for proof of purchase. Gift cards will be sent out by May 1.

Circuit City provided a similar deal earlier this month to recent HD DVD adopters by allowing them to return the product if it had been purchased within 90 days. Both Best Buy and Circuit City's online trade-in programs (run by the same company) will allow you to unload your player beginning March 21. Before anyone thinks they're being witty, only HD DVD players can be returned for store credit, you're not getting $50 per movie disc purchased. Although this format war was in no way these retailer's fault, it's very nice to see them taking care of customers left out in the cold.

According to the Nikkea Business Daily, Toshiba is learning this lesson to the tune of a ¥100 billion loss in revenue this year (to grasp the magnitude of this loss, here it is in numeric form: ¥100,000,000,000) or roughly $986 million in U.S. cash. We usually leave the economic speculation to the experts, but we're pretty sure that's a large sum of money that Toshiba would rather not part with. But as they say, in order to make an omelet, you've got to break a few eggs; though sometimes, you have to break 100 billion eggs, only to find that nobody wants to eat your omelet. Okay, nobody says that.

Attention, people who collect obsolete technology -- here's the perfect chance to, um, add some obsolete technology to your collection! While Microsoft recently announced they're no longer producing HD DVD add-on drives for the Xbox 360, they are unloading their remaining supply at a bargain-basement price of $50, as a Microsoft spokesperson told Bloomberg.

Sure enough, online retailers from Circuit City to Best Buy to Buy.com are listing the defunct accessory for 25 percent of it's original price. At that price, the remaining stock could go fast. Then again, with the prospect of more HD-DVD discs looking less than good, maybe $50 is still too expensive to unload.

We were pretty certain when we first heard the rumors, and we were even more certain when other sources said an official announcement was coming. Now that the official announcement from Toshiba has officially happened, we're officially 100% sure that HD DVD is officially dead. Official!

Well, maybe we should scale that back a little. Although lead company Toshiba has said they'll no longer make HD DVD players, they are reportedly stocking up on recordable HD DVD media for those who want to make their own discs (remember: BetaMax lasted for years as a professional recording format for broadcast outlets). And there's nothing preventing entertainment companies from continuing to put out HD DVDs if they want to. We don't know why they'd want to but hey. if people are still making Sega Genesis games, anything is possible.

Just two days after Blu-ray apparently won the HD video battle, Microsoft has chimed in on the eulogizing. Unsurprisingly, the company doesn't view being on the losing side of the fight as particularly damaging to their platform, saying, "We do not believe the recent reports about HD DVD will have any material impact on the Xbox 360 platform or our position in the marketplace. As we've long stated, we believe it is games that sell consoles and Xbox 360 continues to have the largest next-gen games library with the most exclusives and best selling games in the industry."

The statement was silent on any other plans for the console's external HD DVD player, saying "We will wait until we hear from Toshiba before announcing any specific plans." So no, they're not ruling out an external Blu-ray player at the moment ... but don't expect them to interrupt the funeral to talk about it.

Wal-Mart declared today that it will "exclusively" back Blu-ray in the high-definition movie format war. We know there's a lot of emotions about this issue still out there, but when Netflix, Blockbuster, Best Buy, almost all of the major movie studios and WAL-MART go Blu-ray, can we finally say this is the end for HD DVD? Wal-Mart stated that "in less than 30 days" customers will see the alpha-dog of retailers go predominantly Blu-ray.

Wal-Mart's release to Joystiq also states that the company is moving "exclusively toward Blu-ray ... players." We've requested clarification as to whether this means they will no longer carry the Xbox 360 HD DVD add-on player. We'll update when we get a response. What we can say is that the 10 Wal-Mart stores we did call either had no idea there was an HD DVD add-on for the Xbox 360 or said they haven't had them for a while.

Good evening internet faithful, Gossip Girl here, your only source into the scandalous lives of today's hottest format war. Top story on my home page? Turns out Reuter's saw Netflix proposing to Blu-ray today. Too bad for HD DVD, which was also on Netflix's play-list until today when it sent out an email explaining that the two were splitsville from here on in. Not only that, but Netflix cooed that by the end of the year all HD DVDs "will be changed to standard definition DVDs" on subscriber's queues. Meaning Netflix isn't just kicking HD DVD out, but burning all the memories in the bathtub too.

Netflix isn't the only company amorous about Blu-ray today. Best Buy also sent hugs and kisses in the form of an announcement that it would "recommend" Blu-ray from now on. Although the retail chain isn't choosing a definitive side just yet, Best Buy will "prominently feature Blu-ray hardware and software beginning in March."

There's nothing Gossip Girl likes more than a good cat fight, but sadly this one is looking almost done. With HD DVD taking hit after hit, not to mention the recent clearance price-drop of the Xbox HD DVD player, it's getting tough to imagine dear sweet HD DVD can stage a comeback. Blu-ray is working its magic and those with the power to decide the format war are following.

Update: Peep this sorry response from the HD DVD camp: "We have long held the belief that HD DVD is the best format for consumers based on quality and value, and with more than 1 million HD DVD players on the market, it's unfortunate to see Netflix make the decision to only stock Blu-ray titles going forward. While the Best Buy announcement says they will recommend Blu-ray, at least they will continue to carry HD DVD and offer consumers a choice at retail." [Via Engadget]

Read: Netflix chooses Blu-ray.
Read: Best Buy to recommend Blu-ray.

[Thanks to all who sent us their Netflix letters!]

Effective immediately, the Xbox 360 HD DVD player add-on is now priced at $130 in the US and Canada. Even better, early birds managed to nab the player for a steal this morning on Amazon (though the $80 offer is now sold out). Depending on your perspective, today's price-drop either signals that HD DVD isn't about to go down easy or that it's grasping at building a user base amidst major setbacks.

For the last half year Blu-ray has had some high-profile victories. Now, we're not choosing sides, just saying that those who haven't pledged their allegiance to an HD movie format may want to wait a little longer (but Blu-ray is totally the winner, right?).

If you just bought an HD-DVD player attachment for your Xbox 360, don't feel completely discouraged about the recent movements in the home entertainment industry. While it definitely seems as though Blu-ray has soundly won the format war, Viacom Inc. owned Paramount Studios recently issued a statement saying they would continue producing HD-DVD movies.

The statement was a correction to a recent Financial Times article saying that the company was following in the footsteps of Warner Bros. Entertainment Inc., and adopting Blu-ray as their sole HD format. Following a brief plunge in the stocks of Toshiba (the company most invested in HD-DVD technology), Paramount issued a statement pledging their allegiance to the format less blue. Looks like it's time to hunker down for the long haul, people -- it might be a while before the clear victor for the Battle of the Formats is decided.

In the wake of the recent announcement of Warner Bros' new allegiance to the Blu-ray format (and, as result, sister company New Line Cinema's similarly adopted format loyalty), the HD DVD group has canceled their pre-Consumer Electronics Show press conference. We're not sure if the announcement will impact the HD DVD Promotion Group's booth at the show, though we imagine it will create an atmosphere for their visitors with a level of awkwardness similar to that of a nursing home.

In a mass email to CES attendees, a representative for the group said they are "currently discussing the potential impact of this announcement with the other HD DVD partner companies and evaluating next steps." If these "next steps" don't include lining the pockets of every remaining film publisher on the market to convince them your format's still viable, HD DVD could go the way of the Betamax with a quickness.

(Via PS3F)

Michael Bay has been sipping the "Kool-Aid" again. Several months after the director's infamous night with a band of Blu-ray owners and a few glasses of alternate-reality drink (ending in a brief holdout with Transformers 2 on the line), Bay is back to blasting HD DVD. Despite a sobering HD DVD screening of 300 in late-August and newfound acceptance of Paramount's decision to partner with Microsoft, Bay has fallen off the wagon, stumbling onto a trail of deceit leading to a "dirty secret," a corporate plot to annihilate all forms of our beloved polycarbonate discs -- with explosions, lots of 'em.

Bay writes, "Microsoft wants both [HD DVD and Blu-ray] formats to fail so they can be heroes and make the world move to digital downloads. That is the dirty secret no one is talking about. That is why Microsoft is handing out $100 million dollar checks to studios just [to] embrace the HD DVD and not the leading, and superior Blu Ray [sic]. They want confusion in the market until they perfect the digital downloads. Time will tell and you will see the truth."

While we can't verify just how many $100 million checks have been cashed (we know of just the one we received to ensure the Sony bias keeps flowing), we do know what Bill Gates told us nearly a year ago: "HD DVD is great ... It's neat. But over time, eventually online is going to be more important." That don't sound like no secret to us. Sony was early to the HD movie market and Microsoft didn't want its competitor to run away with a new format before it could get the proper digital distribution network and hardware in place. HD DVD certainly can be viewed as a stalling tactic, and two formats with varying Hollywood support is definitely confusing to consumers, but let's not mistake reality for Michael Bay's vision of Armageddon.

The PS3 may finally be getting around to being a good game console, but there's no denying it's been a great Blu-ray player since the beginning. Sony Europe released figures that 73% of high-def movie sales on the continent were Blu-ray. Sony says the "turning point" in Blu-ray movie sales, which they now say average two to five times the amount of HD-DVD sales weekly, was the release of the PS3.

Blu-ray has been having a pretty solid year in the US as well. It's certainly interesting to note how comparatively small the high-def movie market must be if the lowest selling console in the video game market makes such a massive impact.

It seems Sony and Microsoft no longer have their hearts fully in the battle over high-definition movie disc formats -- if they ever had them there in the first place, that is. In an interview with Home Media Magazine, Microsoft Consumer Media Group Director Kevin Collins seemed uninterested in making the format a cornerstone of the Xbox 360 package. "Microsoft knew if we put in an HD DVD drive that we would have to raise costs and disenfranchise our customers (that are primarily gamers) as the unit would become too expensive," he said.

While Collins said he was proud of HD DVD's strong performance against Blu-Ray, his desire for a fight to the death between the formats left something to be desired. "The [Blu-ray] camp's claims about Microsoft's desire to have a format war are baseless," Collins said.

Sony CEO Howard Stringer, for his part, told the AP said he thought the high-def disc battle had reached a stalemate, mainly due to the lower costs of HD DVD players and the defection of Paramount to the HD DVD camp. That's OK though ... apparently the winner of the movie war doesn't matter all that much after all. "It doesn't mean as much as all that," Sony CEO Howard Stringer told the AP. Yeah ... and those grapes are probably sour, anyway.

Read - Microsoft / Home Media Magazine (via High-Def Digest)
Read - Sony / AP