Since the launch of Xbox 360 the choice of DVD over a HD format, like HD DVD or Blu-ray, has been discussed quite a lot. Later on, Microsoft decided to launch an external HD DVD player for the console, but there are still more or less constant rumors of an Xbox 360 with integrated HD DVD support. The last rumor was started by an Australian site that claimed that people at Toshiba had revealed a project with Microsoft which would result in an Xbox 360 with an integrated HD DVD player. This was suppose to be because of the HD DVD format’s problem with PlayStation 3, which is more or less carrying the Blu-ray sales all by itself.
Toshiba UK has ended these rumors by telling stuff.tv;
“Toshiba has no comment to make on this matter. The Xbox 360 is not a Toshiba product.”
In other words it’s not impossible that Microsoft is working on a HD DVD version of Xbox 360, but it doesn’t seem like Toshiba is involved.