While haven't seen this much side stepping since our annual Mortal Kombat: Deadly Alliance tournaments ended, it looks like HD DVD is a few steps from being officially gone and a rehash of an old rumor isn't helping the situation. Reports are coming in from Australia's Smarthouse citing "insiders at Microsoft in the USA," claiming that a Blu-ray add-on is already well in development and could be ready to launch in as little as three months.

Microsoft has yet to comment on the validity of the report but according to a story on Engadget they've said, "we will wait until we hear from Toshiba before announcing any specific plans around the Xbox 360 HD DVD player." Since Microsoft has little to do with this format war it wouldn't be surprising to see a Blu-ray add-on in the mix sometime in the future, they've even said it could happen a few times already.

[via Joystiq]

This article was originally published on Joystiq.

Lost Planet to include 5GB installation