"Retail sources in the UK have told GamesIndustry.biz that Microsoft has intimated to them that the HD-DVD add-on for the Xbox 360 will be priced such that console and peripheral combined are cheaper than Sony's PS3...Currently, the Xbox 360 retails at GBP 279 in the UK, with the Core System version selling for GBP 209, while the 60GB model of the PlayStation 3 is expected to cost between GBP 399 and GBP 419 when it arrives in late November. Microsoft's alleged comments to UK retailers seem to suggest that the HD-DVD peripheral, which allows playback of high definition movies using Toshiba's next-generation DVD standard, will be priced below GBP 130 (~$245 USD), making an Xbox 360 and HD-DVD player bundle into a potentially attractive option at Christmas." No surprise here. If other rumors are to be believed however, it appears that the price will be
well below $245. My optimistic guess is going to be $150, though I wouldn't be at all suprised if it debuted at $200 with a price drop within 6 months.