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The HD DVD drive, if that is what you are referring to, is just an external drive for the XBox 360. It's output is USB to the XBox 360. Think of it like an external HD or CD-Rom drive for a computer, where the XBox 360 is the computer. All graphics output and video processing is done in the 360, so ti must be powered on, otherwise the drive wouldn't be only $200, it would cost as much as other HD DVD players.
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