Playing catch-up with a series of price drops on HD DVD players from Toshiba, Microsoft has shaved another $50 off the MSRP for its Xbox 360 HD DVD add-on.

That brings the new suggested retail price on the Xbox 360 HD DVD player in the US, Canada, Australia and New Zealand to $129.99. (As we've previously reported, last August Microsoft dropped the price on the player to $179.)

Today's price drop from Microsoft (which is already reflected on the official Xbox site) comes on the same day that Amazon briefly offered the add-on for a mere $79.99. The web retailer promptly sold out of units at that price, and is currently selling the add-on via one of its partners for $155.67.

Purchases of the Xbox 360 add-on include a free HD DVD copy of of 'King Kong' inside the box, and qualify for an additional five free discs by mail as part of the HD DVD camp's "Perfect Offer" program.