We tried really hard not read too much into Microsoft and
Toshiba's tie-up yesterday over HD-DVD, but apparently Bill G. mentioned during a press conference in Tokyo
yesterday that they might consider releasing an updated version of the
Xbox 360 with an HD-DVD drive
(though to be fair, Gates and other Microsoft execs were quick to point out that the company isn't endorsing HD-DVD
over its arch-rival Blu-ray).
Slapping in an HD-DVD drive would jibe with what Steve
Ballmer hinted at us during his interview with us at E3 last month, especially since the lack of a next-gen
optical drive is one of the clearest technical disadvantages the Xbox 360 faces when compared with the
PlayStation 3, which will
sport a Blu-ray drive.