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After the official death of the HD DVD format, Microsoft decided it's time to eliminate the external HD DVD drive from its offer, pushing up front HD downloads instead.

The Redmond behemoth said it will no longer manufacture HD DVD drives for its gaming-console, providing its customers with high-definition content solely from Xbox Live Marketplace.

In a statement published on Gamerscore blog, Microsoft reassured however existing HD DVD customers that they will enjoy full support for their product:

"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."

Just two days later, the price for the external drive has been dropped from $129.99 to just under $50, confirming Microsoft's intention to get rid of whatever stocks they have left.

Without the HD DVD drive, the Xbox 360 is left without an important weapon in its battle against the PlayStation 3- a console in which Sony insisted on cramming a Blu Ray player. However word is out that Redmond is paradoxically preparing a Blu Ray add-on for its console, signaling an even greater victory for Sony's camp (Sony will win money out of licensing Blu Ray technology to MS).

We'll just have to wait and see, but just as Bill Gates said: it's the downloads that are the future...