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Gates sez: We might add HD-DVD to the Xbox 360

Xbox 360

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.

[Thanks, McVety]