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Xbox 360 HD DVD drive to cost $200?

DigiTimes is reporting that the Xbox 360's external HD DVD drive will retail for $200 and be available this Christmas. No doubt it will be out before the end of the year, but as much as we want to believe them, it doesn't seem possible that it could sell for so little. We will believe it when we see it, but we all seem to believe it will be closer to $300-$400 than $200. Does Microsoft have so much invested in HD DVD that it could make sense to take a loss on the accessory?