Retail sources have indicated to GamesIndustry.biz that Microsoft is currently planning to price the standalone HD-DVD drive at GBP 199 (293 Euro) [$370] and to package it with two HD-DVD movies. The sources also suggested that Microsoft will bundle the Premium console and next-generation movie player together for under GBP 400 (589 Euro) [$746] – and that the price could even be as low as GBP 375 (552 Euros) [$700].
For some reason these unofficial numbers have desperate Sony fanboys in a bold mood. I'm not sure why. The bundle prices mentioned both undercut the premium PS3 in Europe (Subtracting the usual 25% price hike paid by our cousins across the pond, this would indicate the stand-alone drive will sell for less than $300 in the US, including two movies. Personally I predict $200-$250). And of course, the millions of people who either don't have a TV capable of taking advantage of HD-DVD or don't feel like shelling out for an "unproven" format still have a choice with MS. So even if these "high" prices hold, the 360 is still in good position to do battle with the PS3 in Europe this Christmas. Oh yeah, I forgot -- the PS3 is skipping Christmas in Europe. Guess it won't be much of a battle after all.
If you need a refresher course on why HD-DVD is better than Blu-Ray anyway (cough...VC1 codec...cough), see here.