Microsoft was one of the earliest adopters of HD DVD, going as far as offering support for the format as an add-on for the Xbox 360. In the light of slipping sales, they lowered prices along with other manufacturers' standalone players, but that alone could not save the format.
Now with the apparent death of HD DVD, Microsoft claims they are not shaken by this, saying that HD DVD format debacle will not have a "material impact" on its console sales. And in a sense, they are probably right since nobody buys a 360 for HD DVD support alone. Microsoft said in a statement today, they will wait for news from Toshiba before making any decisions. But with most things said and done by now, it's likely this will pushing them to offer Blu-ray eventually. The rumors already started today as we informed you earlier.