Microsoft to Offer Xbox 360 With Built-in HD DVD?

A key marketing and technical difference between the Xbox 360 and the upcoming PS3, as far as next-gen DVD formats are concerned, is that Sony plans to include Blu-ray drives inside their new game consoles. Microsoft, on the other hand, said it would offer HD DVD players as add-ons for its already-available Xbox, starting later this fall.

Now there are reports trickling out of Asia that the next-gen of Xbox 360 will come equipped with internal HD DVD.

Microsoft reportedly is now in the process of selecting manufacturers to build the drive, according to "sources in Taiwan's optical disc drive industry," said The Asian Web site said if the process of certification and partner cooperation go smoothly, an Xbox 360 with built-in HD DVD could hit retailers by next summer (2007), according to its sources.