It looks like the Xbox 360 might become even more of a media center, come next year. Rumor is that Toshiba is working with Microsoft on a brand new Xbox 360 console, which will include an HD-DVD player. Of course, this is what most were expecting the original 360 release to entail, but they (and myself) were wrong.
Though still a rumor, it’s one that’s difficult to not see happen. The PS3 includes a Blu-ray drive, and look at how well that format is doing on the market. As it stands, competition is incredibly tight between Sony and Toshiba, so for an integrated HD-DVD drive to happen, it would no doubt help sell both more consoles and more HD-DVD movies. Sounds like a win/win. The new console would also include a much larger hard-drive and other media-centric additions.
The device is being developed in response to the PS3 driving sales of games software and Blu-ray content in several countries. A recent Sony Brand Wave study conducted in five countries including the UK, Australia, France Germany and Spain revealed that a key reason that consumers are buying a PS3 is because it includes a Blu-ray player.
Source: Smarthouse