Wednesday 13 September 2006
Plans for an updated version of Xbox 360 with an internal HD-DVD drive are being drawn up by Microsoft, with the intention of releasing the new Hi-Def enabled next-gen console in early 2007, according to industry sources.

This would be one way to combat PlayStation 3's in-built Blu-ray support, which will enable playback of movies in the new HD format, as well as giving much more space for game developers to use on each disc. Konami's Hideo Kojima - the man behind the Metal Gear Solid series - has stated that MGS4: Guns of the Patriots could not physically fit on a normal DVD disc.

Despite this news coming from reports that Microsoft is currently selecting a manufacturer for these drives in Taiwan, when contacted the tech giant stated that it "does not comment on rumour and speculation".

But then it is unlikely that any official announcement will be made until 360's external HD-DVD drive has been released this Christmas, for fear of putting off a whole wave of potential new Xbox 360 owners who would rather wait for a fully integrated system.