After this: http://vgchartz.com/forum/thread.php?id=8830, here's some more evidence that Microsoft plans to release an Xbox 360 with an HD-DVD drive, apparently this time from Toshiba insiders.

http://www.smarthouse.com.au/Gaming/Console/P4G5C3U2?page=1

"Microsoft, according to insiders at Toshiba owner of the HD DVD patents, claim that Microsoft is working on a brand new Xbox that will incorporate not only a new HD DVD drive but a large hard drive and new entertainment software that is a spin off from its struggling media centre offering.

This is going to be very bad for sony.

It's going to lead to a price and SKU war that will damage both Microsoft and Sony as they can't decide whether they have a games console, a digital content delivery system, a home entertainment centre or a platform for optical disc adoption.

@game boy

I think microsoft is trying to (make people think they)have better technology and make people think that the ps3 has nothing more than the xbox 360. This is a huge problem for sony.Not as much for microsoft, this will not only make them lose console sales, but hd dvd will make a huge comeback.

not at all gameboy. By the end of next year microsoft could be on 45nm chips for all SKU's. That will mean a very cheap premium and an EXTREMELY cheap core (cheaper than the Wii will be). I wouldn't expect a dual Xbox 360/HD DVD (which will be sub $200 for cheap versions) to be prohibitively expensive at the end of 2008. And of course hard drives are very cheap, especially with Toshiba on board. What could make it much more expensive is if it DOES contain the rumoured twin high-def tuners. From my perspective, I was looking at getting a twin high-def tuner with a large hard drive anyway soon. But if u add in a hd dvd drive, a quieter 360, all around the time my current one will run out of warranty?????? Hell. im not buying the tuner now, im gonna wait and see if this comes true and if it does i'll buy it day and date

I agree Game Boy, this will hurt them both. Now people will (again) start to wait for the HD-DVD 360, and it will eat some sales until then. Of course, after its release, 360 will see boost in its sales. This is something that 360 should have had from the start. Not that i would care, but people waiting for the HD-DVD -drive have hurt 360 from the beginning.
Another SKU for the 360, this is starting to get out of hands. What are they going to call it? The Super Elite?

And the real question is, that will the games be released on HD-DVD after the new SKU?

all depend of one thing :

WHEN !

when the Xbox360 HD will be ready ?

and also

at which price ?

and will the games use the HD DVD features too ?

with the Elite already more expensive that the 40gb, the BR already killing the HD DVD, Microsoft need to hurry to bring their HD DVD offer.

@bdbdbd

If they release games in HD DVD, it could mean huge terror, microsoft wont commit such an error.

Smarthouse again?

Who heard of these people more than 2 months ago? I'm seriously unconvinced.

Could it just be a reposting of this news from '06?

http://www.itwire.com.au/content/view/4816/53

Then again, I was unconvinced about the 40gb PS3.

*rollseyes*

I just bought a freakin elite because it was the 'best' model... if its true it truely bites, it probably is as well.