Here's an interesting bit of news. According to GameIndustry.biz, the HD-DVD drive for the Xbox will be priced so that it and the console combined will be cheaper than Sony's Playstation 3.
Currently, the Xbox 360 retails at GBP 279 in the UK, with the Core System version selling for GBP 209, while the 60GB model of the PlayStation 3 is expected to cost between GBP 399 and GBP 419 when it arrives in late November.

Microsoft's alleged comments to UK retailers seem to suggest that the HD-DVD peripheral, which allows playback of high definition movies using Toshiba's next-generation DVD standard, will be priced below GBP 130, making an Xbox 360 and HD-DVD player bundle into a potentially attractive option at Christmas.
Keep in mind that they're comparing the cheaper Xbox 360 core system and the high end, 60GB PS3. For those on a budget, the 20GB PS3 will still probably be the way to go. If you'd like to read more, the entire article can be found here.