http://www.smarthouse.com.au/Gaming/Con ... 3U2?page=1
Microsoft, according to insiders at Toshiba owner of the HD DVD patents, claim that Microsoft is working on a brand new Xbox that will incorporate not only a new HD DVD drive but a large hard drive and new entertainment software that is a spin off from its struggling media centre offering.
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.
I also found this interesting. For some reason I was under the impression that the Xbox's add-on HD DVD drive was selling well.
Recent GFK research reveals that the recently launched Xbox 360 HD DVD attach player is not selling well. Another factor that impacted early sales of the Xbox 360 was that Microsoft failed to include a HDMI port - omitted because Microsoft wanted to cut down the costs of the console in an effort to compete up against the PS3.