Xbox to stop making HD DVD add-on

About 300,000 of the HD DVD add-ons have been sold

Microsoft has decided to stop making the HD DVD add-on for its Xbox 360 games console after Toshiba abandoned the high definition DVD format.

Toshiba estimated last week that about 300,000 of the add-ons had been sold.

Microsoft was one of the key backers for the HD DVD format, competing with Blu-ray, which was the format available in Sony's rival PlayStation 3 console.

Microsoft said it would continue to provide warranty support for the $130 (£115 in the UK) HD DVD add-on.

Last week, Toshiba said it would stop production of HD DVD players and recorders after major film studios decided to back Sony's Blu-ray format instead.

Toshiba said the tipping point came last month when Warner Brothers decided to release its movies only in Blu-ray.

The Xbox add-ons sold represented 30% of the one million HD DVD devices that were sold worldwide.

That compares unfavourably with the 10.5 million PS3s sold by Sony, which come with a built-in Blu-ray drive.

Xbox to deliver community games

Little Gamers is one of the first community titles

Hobbyist game developers will be able to share their "home brew" titles over Microsoft's Xbox Live online service.

The company has launched a community driven service that will let amateur creators build and distribute games.

"Ten million people will be able to play your games," said Microsoft's Chris Satchell, at the Game Developers Conference in San Francisco.

Microsoft also announced a sequel to its four and a half million-selling game Gears of War.

"I think of this as gaming created by the community and managed by the community but enjoyed by everyone," said Mr Satchell of the new game distribution system.

'Democratisation'

Microsoft freely distributes tools, called XNA, which gives amateur developers the chance to build games for the Xbox 360 and for Windows.

But until now the games could not be shared. The tools have been downloaded 800,000 times and more than 400 universities worldwide are using the XNA package.

Mr Satchell said it was the democratisation of development and distribution.

"There are tens of thousands of developers out there chomping at the bit; we need to unlock that potential," said John Schappert, head of Live services.

Microsoft also announced that it was planning a revenue sharing model for the community games distributed over Xbox Live.