How much will it cost? Microsoft isn't saying
At E3, Microsoft unveiled its plans for the still-mysterious Xbox 360 HD-DVD drive. The unit will connect to your Xbox 360 using a standard USB cable, but will almost certainly require an external power source (i.e., another power outlet).
A USB cable connects to the 360
The bad news? We still don't know much about either the release date (currently described as "holiday") or the price. GamesIndustry.biz reports that retail sources are predicting that Microsoft will bundle the Xbox 360 and HD-DVD drive together in a retail bundle that will come in below the PlayStation 3's entry $499 price point, but that remains to be seen. Earlier reports, such as one given by CNN Money's Chris Morris, pegged the HD-DVD drive at a much higher price -- possibly as expensive as the Xbox 360 itself, or $299-399. At this point, it's all conjecture.
As for a release date, late 2006 seems like a likely time, but Microsoft isn't confirming or denying anything at the moment outside of "holiday."
In other news, Microsoft also unveiled several other accessories at E3 2006, including a Wireless Steering Wheel, Wireless Xbox Live Headset, and Xbox 360 Camera. All three new accessories are expected to be out later this year -- Microsoft hasn't been precise with its plans.
More soon.