Microsoft is all gearing up to take on some serious competition from the Playstation 3. At E3 Microsoft has announced a HD-DVD player (Xbox 360 Player) for the Xbox 360 which will hit stores this year in time of holidays. Microsoft execs said that 10 million Xbox 360 consoles will be sold by the time the next generation consoles from Nintendo and Sony are available. The HD-DVD player connects via USB to the 360. The Xbox 360 players might stores by November 11 after Thanksgiving, however there is no official announcement from Microsoft for the same. The Playstation 3 starts at $ 500 and will come with a Blu-Ray player.

Pricing and availability is not known yet.
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