Xbox 2 to use HD-DVD technology?

Both NEC & Toshiba are pushing for Microsoft to pick up their HD-DVD media format for use with the Xbox 2.  This latest next-gen storage format will be competing against Blu-ray (to be used for PS3 games) to become the successor to DVD.  Costs remain the biggest concern, but NEC believes it can drive prices down within six months of installing HD-DVD drives in its PCs, as well as selling the units externally—likely to begin late next year.  Given those estimates, if Microsoft is really planning on releasing Xbox 2 by the end of 2005, it may be too expensive to incorporate the HD-DVD technology.  We'll find out when the next E3 rolls around...