According to DigiTimes, sources from within the industry are stating that Microsoft is in the beginning phases of developing a new line of Xbox 360s, which will include an on board HD-DVD drive. The story further states that the Big M is in the process of selecting Taiwanese manufacturing plants to produce the internal drive.
The rumors of an internal HD-DVD player for the 360 are not entirely without merit. In June of this year, Mark Whittard – general manager of the Toshiba IS division in Australia – said, "I would imagine that there are plans in place to put an HD-DVD drive internally in future revisions of the product."
If Microsoft does come through with an internal HD-DVD for their machine, it will negate all the bluster that the company has raised against Sony in its decision to include a next gen DVD player in the PS3. Microsoft has asserted that Sony was forcing the player down consumer,s throats, whereas Microsoft was taking the high road in allowing consumers to choose what hardware configuration they wanted.
The internal HD-DVD player is expected to be unveiled sometime during the first half of 2007, according to the DigiTimes report. Microsoft has yet to comment on the story.