Microsoft has slashed USD 50 off the price of the Xbox 360 HD-DVD player in the US, Canada and New Zealand.
The movie peripheral will now retail for USD 129.99 [£66], down from USD 179.99 [roughly £92], and can still be bought with an offer that gives the consumer five free HD-DVD movies.
HD-DVD is becoming increasingly less attractive as a viable format, as more and more movie studios opt for the rival Blu-ray format.
Last month, UK retailer Woolworths said that it would no longer be stocking HD-DVD movies in store.