The big news is the external HD DVD drive, which we've been expecting to hear about for months. The drive can be seen as a counter to the forthcoming PlayStation 3's Blu-ray drive, and Microsoft is certainly pricing it as such. The new drive will launch in Japan on November 17, and will retail for ¥19,800 ($170). The drive will come with a remote control.

Microsoft did not announce availability or pricing in the United States, but we expect a similar launch date in the US and a price of $199. This would make Microsoft's premium Xbox 360 package a $598 affair if you roll the HD DVD drive in, coming in at the same price as the top-of-the-line PS3 ($599).