Microsoft has attacked rumours that future versions of the new Xbox 360 console will be HD-DVD compatible, claiming that there are no plans to release an Xbox 360 that features the next generation DVD drive. This flies in the face of rumours from a Japanese news service which claimed that the company planned to launch an HD-DVD compatible Xbox 360 in 2006.
Rumours might have started due to comments made by Bill Gates himself, claiming that "We (Microsoft) are looking at whether future versions of Xbox 360 will incorporate an additional capacity of an HD-DVD player or something else." This was obviously a reference to using the console for watching movies, rather than to release games on the HD-DVD format, which could render future titles incompatible with the original Xbox 360. In any case, it seems like it's a moot point now anyway.