Taiwanese tech paper DigiTimes stated that the external USB drive will not be sold in Asia due to lack of demand for HD discs, according to Microsoft Taiwan.
DigiTimes reported that the supply of pre-recorded HD-DVD movies in the area is not currently sufficient to support sales of dedicated drives.
"This is because the external HD-DVD drive is designed to play back movies pre-recorded on HD-DVD blue-laser discs, and the supply of HD-DVD movies in Asia is not sufficient to support the sale of such hardware, for the time being at least," a spokesman for Microsoft Taiwan told the paper.
Confirming the Xbox 360 HD-DVD USB drive at the E3 gaming conference in May, Albert Penello, director of global marketing for the Xbox 360, said that the add-on "carries with it an extension of the HD era that Xbox 360 offers, and provides the most visually stunning movie watching experience available".
"This new accessory will connect to the Xbox 360 console with a USB cable, enabling it to harness the power of the Xbox 360 for the HD video outputs and digital surround sound," he added.
"As an accessory, it becomes another shining example of the flexibility designed into the Xbox 360 console in order to grow and add new features."
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