DigiTimes has reported that Taiwan's game industry favors the Xbox 360's external HD DVD drive over the PS3's built in Blu-ray drive.
Microsoft will launch external HD-DVD drives for its Xbox 360 at a retail price of US$200 by Christmas of this year, and Taiwanese games developers and gaming services providers indicated this this is a smart marketing strategy as compared with Sony's adoption of built-in BD drives for its PlayStation 3 (PS3).

External drives have more flexibility than built-in models, the companies pointed out, while adding that despite BD having a much larger storage capacity than HD-DVD, pre-installation of BD drives may decrease the market competitiveness of PS3 units.
If you'd like to read more, head on overo to DigiTimes.