Microsoft has slashed the price of its HD-DVD drive accessory for the Xbox 360 console from $179.99 to $129.99.

The $50 reduction is effective immediately in the US, Canada, Australia and New Zealand.

The new price still qualifies users for five free HD-DVDs when they purchase the Xbox accessory or any Toshiba HD-DVD player or HD-DVD enabled Toshiba notebook.

A Microsoft spokesman told vnunet.com that there are "no announcements to-date of the price drop coming to the UK or Europe".

Some commentators view the price cut as a desperate move by Microsoft to revive the HD-DVD brand, following moves by producers and retailers to side with the rival Blu-ray format.