Microsoft’s external HD-DVD drive for Xbox 360 will not be available in Asia, according to reports quoting sources from Microsoft Taiwan.

While the peripheral is set to launch at the end of this year in both the American and European markets, website digitimes is claiming a Microsoft source as stating there is not a big enough market for HD-DVD movies in the region.

The peripheral will not launch "because the external HD-DVD drive is designed to play back movies pre-recorded on HD-DVD blue-laser discs, and the supply of HD-DVD movies in Asia is not sufficient to support the sale of such hardware, for the time being at least", says the report.

The Xbox 360 HD-DVD player connects to the home console and will play movies recorded in Toshiba’s high-definition DVD format.

Although no official price has been forthcoming, retail sources have previously indicated to GamesIndustry.biz that the add-on will be priced below GBP 130.