I think most have missed the point behind the HD-DVD add on to the 360. It is not really meant to sell, it is to prevent vetos. It is like fast food hamburger places selling salads. They really do not want to sell salads, they are low margin and very low profit. They prevent the restaurant from being vetoed by one person in a crowd.
What Microsoft is trying to prevent is a comparison of 360 vs PS3 by uninformed consumers (and anyone doing the comparison is uninformed, those that are informed already know which platform they want), ruling out the 360 since it does not play HD movies. What Microsoft wants is the consumer to look at the two units see both can play High Definition videos, but then notice that they do not have to commit to HD right now and can save big $$ over the PS3 now and in the future can always come back for the add on box (which they never really do).
The price that MS is quoting on the HD-DVD player will probably be 0 profit or even a loss. They really do not want to sell you it. After all they do not have any real after market monies generated by it (i.e. Microsoft is not producing HD-DVDs to sell to you). They just want you to see the 360 in a better light and buy it so they can make money selling you tons of video games.
Sony on the other hand has a movie studio and it is another way to make money on you. They are very interested in selling you Blu-Ray. They stand to make money on this deal, so they do not make it optional.
What Microsoft is trying to prevent is a comparison of 360 vs PS3 by uninformed consumers (and anyone doing the comparison is uninformed, those that are informed already know which platform they want), ruling out the 360 since it does not play HD movies. What Microsoft wants is the consumer to look at the two units see both can play High Definition videos, but then notice that they do not have to commit to HD right now and can save big $$ over the PS3 now and in the future can always come back for the add on box (which they never really do).
The price that MS is quoting on the HD-DVD player will probably be 0 profit or even a loss. They really do not want to sell you it. After all they do not have any real after market monies generated by it (i.e. Microsoft is not producing HD-DVDs to sell to you). They just want you to see the 360 in a better light and buy it so they can make money selling you tons of video games.
Sony on the other hand has a movie studio and it is another way to make money on you. They are very interested in selling you Blu-Ray. They stand to make money on this deal, so they do not make it optional.