Recent rumors stated that the XBox 360 with its upcoming HD-DVD add-on component were to place the system at an astronomical $900. Microsoft quashed that rumor by stating that the HD-DVD add-on would only be $200. However, considering a $400 unit plus HD-DVD plus wireless comes to a whopping $700. This is $100 more than the $600 PS3 with Blu-Ray and built-in wireless. In addition, the PS3 will have 60 gb instead of the 360's 20 gb.
Nevertheless, if HD-DVD does win the next generation HD format battle, then Microsoft may be in a great position. Moreover, one key difference between the two systems is that the 360's add-on components are optional meaning that the consumer can ultimately make the decision as to what components are necessary for his or her entertainment.