The vendor in an employee blog on Saturday said it plans to withdraw from the HD DVD format and will no longer manufacture new HD DVD players for the Xbox 360.

The statement did not directly mention Blu-ray or reveal any plans by Microsoft to adopt the high-def format, though it did note that "HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room, along with playback of the DVD movies they already own."

Microsoft also will continue to provide standard product and warranty support for its players that are already in the market, according to the statement.

Microsoft said the move came "as a result of recent decisions made by Toshiba, Hollywood studios and retailers," referencing actions by several high-profile companies to back Blu-ray.

The death knell for HD DVD came last week when Toshiba, its main backer, ceded victory to Blu-ray, saying it will stop developing, manufacturing and marketing HD DVD gear by the end of March. Toshiba's decision came after Warner Bros. Entertainment and retailers including Wal-Mart, Best Buy and Netflix all came out in support of Blu-ray.

Support for high-def DVDs on gaming consoles became a major tactical play in the format war. While HD DVD players have been available as an add-on to the Xbox, Sony, the prime backer of Blu-ray, included built-in support for its format into its Playstation 3 gaming console when it debuted at the end of 2006.

Sony's inclusion of Blu-ray on the Playstation 3 was a controversial decision at the time, in part because it was responsible for the system's high price tag. That stratagem now is widely credited for Blu-ray's victory.