Microsoft has announced it will no longer produce the HD DVD add-on drive for the Xbox 360, although support will be continued for existing customers. A statement on the company's Gamerscore blog reads:

"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."

It was recently announced that Paramount movies would join the existing line-up from Warner via Xbox LIVE - giving Microsoft a high-def movie route to market that bypasses next-gen hardware.