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starcraft said:
Putting an HD DVD drive in would have delayed launch by a year and pushed the price up and right now the Xbox 360 would have been a relative nonity.

MS's biggest mistake was Rrod.

Totally agree.  An Integrated HD-DVD drive would not have done anything to help 360 sales.  They might actually be less than now because of the higher cost.  The HD media war would still be going on today, and everyone would lose.  The one thing MS did right, was make their machine a game console, and not try to throw everything into it.

RRoD was a HUGE mistake.  The initial 360s were one of the most unreliable consumer electonics devices ever.