Microsoft representatives in Taiwan says the Xbox 360’s HD-DVD drive will not launch in Asia this holiday.

According to a DigiTimes report, Microsoft has elected not to launch the Xbox 360’s external HD-DVD drive in Asian markets at this time. Microsoft Taiwan is quoted as stating, “This is 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.”

The Xbox 360’s add-on HD-DVD drive is scheduled to launch in North American markets this holiday season, as is Sony’s PlayStation 3. The PlayStation 3 comes with an internal high-definition Blu-ray player.

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