Alpha_Spartan
Regular
“The initial shipments of Xbox 360 will be based on today's DVD format,” Gates said at a joint news conference with Toshiba. “We are looking at whether future versions of Xbox 360 will incorporate an additional capability of an HD DVD player or something else.”
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This is from TeamHypeBox and Cesar has a history of biting on dubious rumors, so you might want to swallow the whole salt shaker.
Personally, I think this is bunk and that MS isn't this stupid. It goes against MS whole cost-cutting strategy. They're trying to make a profit and won't add anything that will add to the cost of the machine.