We're well aware that the HD DVD camp wants to use the upcoming Xbox 360 HD DVD add-on to battle the Playstation 3 as a high definition movie player, but rumors have persisted since the console's launch that it would eventually need the space for HD gaming. Those rumors got a new lease on life today when a trade magazine quoted a Microsoft exec as saying they "haven't determined" if the drive would be used for gaming. Just like earlier rumors of a price drop or that an integrated HD DVD drive was on its way, the Gamerscore blog has posted a denial of the claims. They're sticking to the company line that this drive is designed for playing movies, only, and will not play games on HD DVD. We're not sure if that will help the 360 by avoiding a split userbase or hurt HD DVD by not giving gamers another reason to upgrade, but with a yet-undetermined price and a potentially slower transfer speed than the existing DVD drive this decision is probably for the best.

[Via Joystiq]