Microsoft announced the price of its HD DVD player for the Xbox 360 will get a $20 price cut, from $199 to $179:
As an AP report quoted by Yahoo News explains, Microsoft intends to bundle five free movies with the drive for buyers who purchase it between August 1 and September 30, too.
The move comes barely a month after the Blu-ray Disc Association announced a promotion where it, too, intends to offer five movies to buyers of Blu-ray hardware. All Blu-ray players are eligible for that promotion, including Sony's PlayStation 3 console, which makes Microsoft's own promotion a rather obvious retaliatory move. The AP report doesn't say whether Microsoft's offer will be limited to a selection of titles like the Blu-ray offer, though.