Microsoft will reportedly bundle an external HD DVD player with the Premium package of the game console in Europe next November, priced at 590 euro. Citing retail sources, GamesIndustry.biz web-site reports that Microsoft is planning to price the standalone HD-DVD drive at 293 Euro, 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 590 Euro.

Microsoft is also expected to release the external add-on HD DVD drive for the Xbox 360 game console by Christmas for $200. The drive is manufactured by Hitachi-LG Data Storage (HLDS) and will allow owners of the console to play-back HD DVD high definition movies.

The Xbox 360 is also powered by a custom graphics processor from ATI, capable of offering powerful rendering in gaming as well as H.264 decoding for HD DVD reproduction.

Microsoft has added the add-on drive to the Xbox 360 in order to compete with Sony?s PlayStation 3 console, which offers play-back for the rival Blu-ray Disc format.