Digitimes of Taiwan seems pretty darn sure that the Xbox 360 HD DVD is going to be released for $200. They also seem pretty sure it's going to be available by Christmas, but that's something everyone pretty much figured already.
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.
We're not sure where their sources are from, but they could be from Taiwanese manufacturing companies that are contracted to actually build the HD DVD unit. Either that, or Digitimes is just making stuff up.