Microsoft’s HD-DVD drive for the Xbox360 has already been demoed several times, but a release date and price have still not been announced.

However, Asian tech website DigiTimes is reporting that it has received confirmation that the device will cost only $200 and be released in time for Christmas.

Other reports have said that the drive may cost as much as $500, but this now looks unlikely.

When Pocket-lint reported on the HD-DVD drive last week, a Microsoft spokesperson told us, “Since launching Xbox we have retained a games-first emphasis, but we also offer consumers the ability to build on our powerful platform, such as in combination with a Windows Media Center Edition PC".

“We feel that offering the drive externally is the best way to give consumers the ultimate choice to create their own high definition experience."

“We have no plans to release the Xbox360 with an internal HD-DVD drive.”