Toshiba helping prep HD-DVD-equipped 360?

Source: Australian tech-news site Smarthouse. What we heard: In September 2005, Microsoft announced it was countering rival Sony's drive to make Blu-ray disc the successor to DVD by backing the HD-DVD format. Ever since then, speculation has percolated about whether Microsoft's gaming console...

Source: Australian tech-news site Smarthouse.

What we heard: In September 2005, Microsoft announced it was countering rival Sony's drive to make Blu-ray disc the successor to DVD by backing the HD-DVD format. Ever since then, speculation has percolated about whether Microsoft's gaming console would come with an HD-DVD answer to the PlayStation 3's internal Blu-ray drive.

Though such rumors were largely dispelled by the January 2006 announcement that no internal HD-DVD was in the works and recent discounting of the 360's external HD-DVD player, this week they heated up again. The spark was an article on the Australian gaming site Smarthouse citing "insiders" at Japanese electronic giant Toshiba. Though Toshiba partnered with Sony to manufacture the PS3's Cell processor--and recently bought out Sony's share of Cell manufacturing--the two companies are backing different horses in the HD-DVD/Blu-ray war.

Though Blu-ray had been gaining an upper hand in the conflict, Toshiba went all out this fall to even the odds. The company paid a reported $150 million to Paramount to make its high-definition video releases HD-DVD-only to counter Sony Pictures and Sony Pictures Classics' ample Blu-ray exclusives. It also countered the five free Blu-ray disc offer with a quintet of free HD-DVDs after the purchase of any HD-DVD player, including the $179 360 add-on.

Now, if Smarthouse is to be believed, Toshiba is making another move to increase the adoption of HD-DVD. "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 larger hard drive and new entertainment software that is a spin-off from its struggling media center offering," the site claims.

After quoting a Toshiba executive saying "an Xbox with a built in HD-DVD drive is critical," Smarthouse goes on to say the new 360 will also have built-in Wi-Fi and true 1080p output--capabilities both versions of the PS3 already have. Microsoft is also considering building in a dual HDTV tuner, Tivo-esque program guide, and a new type of universal MP3 player docking port.

Though such a move will likely irritate 360 owners who've already cluttered their A/V setups with the external player, an Xbox equipped with an internal HD-DVD drive would be a logical next step. With high-definition video becoming standard and TVs growing ever larger, more and more consumers will be looking for a game console that plays HD video out of the box.

But while such a move seems all but inevitable, one major issue remains: price. Right now, the cost of a $349 20GB Xbox 360 Pro or the $449 120GB Xbox 360 Elite and the external HD-DVD drive is far more than either the $399 40GB PS3 or the $499 80GB PS3--$528 and $628, respectively. If Toshiba and Microsoft can't make a HD-DVD-equipped console cheap enough to be attractive--or cool enough not to suffer from the console's widespread overheating problem--the next-gen console war could get a lot more interesting.

The official story: "Microsoft does not comment on rumors or speculation."--Microsoft rep.

Bogus or not bogus?: Not bogus that, provided the HD-DVD/Blu-ray wars continue, an HD-DVD-equipped 360 will be released. (The HD-DVDlite?) As for how much it will cost...that's another story.

559 Comments

  • MadDog550493

    Posted Jan 5, 2008 11:37 pm PT

    I was looking forward to the new 65nm because it would fix the 360 and make it quiet, but also make it cost a lot less so by the time it would come out the xbox 360 elite would be like 350 bucks, but with the 320gb hard drive, I'm scared the price will be like $550

  • jaredrichards3

    Posted Oct 30, 2007 7:37 pm PT

    Funny how Microsoft is playing catchup to the ps3 now, all these extra features are gonna cost a lot more if added. HD-DVD is such a waste of time, Blu-Ray disc's hold up to 54 gig... game set and match!

  • Hawk456

    Posted Oct 29, 2007 7:03 am PT

    Unless the games are on HD discs, I don't care and I won't pay extra for the technology.

  • Nosnitsttam

    Posted Oct 27, 2007 12:32 pm PT

    not a fan of all the different versions of consoles. But if i were to buy another version of the 360, THAT would be the one. But honestly, just how many revisions are they going to make? remember when companies only made ONE system? and that system would last for a few years until a new one was created? those were good times. Why can't sony and microsoft just go back to that, people don't want that many choices, it makes it harder for the consumer to decide on what should be the right choice and they get pissed off when they find out the console they bought is being replaced with an even BETTER version. Why do you think so many people buy a Wii? it's cheap and there's only one version, not too much to think about there. it's time for sony and microsoft to back to basics before people just start throwing up their arms in anger.

  • capnzack

    Posted Oct 27, 2007 11:17 am PT

    does anyone care about quality of games anymore? why do these companies have to keep attempting to outdo each other? the adding of new HD interfaces and all that garbage isnt making your boring games any more innovation youre just screwing loyal customers that bought your consol before these new generations of fortified techonological junk get released.. its a sad age for gaming

  • Muzykmann

    Posted Oct 26, 2007 10:13 am PT

    This seems like an awful idea to me. The 360 is still destroying the PS3 in the install base count. Why would they change their formula while they're ahead?

    The only time this would make sense to release would be once the PS3 starts gaining momentum and looking like it may overtake the 360. Until then, I think MS should leave it alone.

  • pixelsword

    Posted Oct 26, 2007 8:45 am PT

    RUMOUR SQUASHED: (ONCE AGAIN, GAMESPOT'S BEHIND)

    http://news.teamxbox.com/xbox/14900/Toshiba-Denies-Xbox-360-with-BuiltIn-HD-DVD-Rumor/

    Last week, an Australian lifestyle technology publication claimed that a Toshiba executive told them that a new Xbox 360 with a built-in HD DVD drive is in the works. Now, a British gadget magazine got word from a Toshiba spokesperson, who told them: "It's got nothing to do with us. But we know Microsoft doesn't want to include the HD DVD drive so as not to limit the user's experience." http://news.teamxbox.com/xbox/14900/Toshiba-Denies-Xbox-360-with-BuiltIn-HD-DVD-Rumor/

  • RockaWuzHur

    Posted Oct 25, 2007 7:29 am PT

    I don't own an HDTV so this crap really doesn't matter to me. But if i could just say this...
    Microsoft don't do a Sony! Stop worrying so much about HD! Look at the PS3! Its a HD monster but in terms of fun it sucks! Please don't do a Sony PLEASE

  • Xuljester

    Posted Oct 24, 2007 7:08 pm PT

    This is a stupid move all around. As much as I dislike the Xbox 360 for its obvious faults and the fact that buying one is a gamble for trouble, the idea of making HD-DVD built-in for a console that already offers it as an external add-on just isn't right.

    Unless they plan to drop the price of everything else and price this new HD-DVD ready console reiteration at a price which matches the PS3's cheapest deal, at the very least, it will begin to reveal the fact that the only great thing about the Xbox 360 is the assortment of games, and that can change quite quickly. Price was once the determining factor in purchasing a next-gen console, and still is since the Wii is outselling both the PS3 and 360, so by ditching the slightly sublime nickel-and-dime tactics they are revealing that the console doesn't have too many positive aspects to it.

    And another thing; the 360's new built-in HD-DVD is only going to be for HD-DVD movies. But if they do decide to take it to gaming, which is pretty stupid to do on a console that's been out this long, then 360 owners will have to upgrade. So, if this is the case, then current 360 owners can only hope for an upgrade or console swap, otherwise they'll end up being the ones in the dog-house when it comes to console pricing, as their investment would become practically double of even the original 60GB PS3's "dreaded price-tag".

    While developement may be easier for the 360, it is all tried and true and nothing new, and it's costing the same amount it would cost to get a PS3 and enjoy games that have the room to actually go somewhere. This built-in HD-DVD isn't even going to bring anything really new to the table, so now one has to wonder, "Is the Xbox 360 really worth it?"

    As for those arguing about Sony's SKU additions, they're only trying to cater to the price-driven consumers, and dropping prices always come with some drawback. The drawback to the 360? Quality hardware. The failure rate speaks for itself. Just be glad the PS3 is still a quality machine regardless of the removal of the Emotion engine or the extra memory ports.

    And, of course, since the Wii has no worries about overheating or anything such, and it debuted at a pretty cheap price, the only thing they need to work on is their games. Which means they'll have to be more and more original as time passes since the Wii doesn't have the power to rival either of the other consoles, which isn't necessarily bad unless they start to lose creativity and begin to rehash several of the games.

  • nesto423

    Posted Oct 24, 2007 1:49 pm PT

    what good will the hd tuner do for me ?? i have one integerated in my hdtv and i dont get HD w/out the box from charter!

  • V-Nine

    Posted Oct 23, 2007 8:30 pm PT

    Dual HDTV tuners built in(support of 2 screens like Sony originally promised)? Larger HDD(uber room..good. Already know people w/ 500 GB PS3s)? Built-in HD-DVD drive( don't care but its a feature lol)? I might have to reconsider this gen of sytems after all but only if MS can deliver where others are failing.

  • RASTAMOUSE

    Posted Oct 23, 2007 3:50 pm PT

    im getting sick of microsoft and sony bringing out new stuff to compete with each other. Its all just a con so they can get more money. ill proberly end up buying one of these, but im getting sick of spending hard earned money on something that will just end up being last weeks news.

  • matt_dangelo

    Posted Oct 23, 2007 11:27 am PT

    trying to act like sony and jsut make a wnnab e thing..i mena it would only be for movies anyway.....MS said no hd-dvd only games....and plus what happened epople saying "sony pushed blu-ray on its users"...what about this?

  • pridex

    Posted Oct 22, 2007 10:26 pm PT

    @ R3DN1N3 its not a bust like sony. sony busted for plenty of other reasons than making another console. Thats all MS is doing. It wont be out for a while and im rather upset that they are doing it since i bought 4 xbox's due to the quality of CRAP!

  • vf21x

    Posted Oct 22, 2007 9:53 pm PT

    It took Microsoft 2 years to finally realize that SONY got it right the first time.
    HEHEHE!!!!!

  • incredibilistic

    Posted Oct 22, 2007 9:27 pm PT

    Wow. So many comments. Guess it's my turn.

    It would actually be interesting to see what the adoption rate of the HD-DVD add-on is compared to the 10+ million 360's currently on the market. Either Toshiba is taking a big chance HOPING that embedding a drive will make a difference or the install base of add-ons is high enough to support yet another SKU (bad enough MS just released the Arcade SKU sans HDD).

    I believe this kind of news is good because it will really make force the industry to one side. Sony fanboy or not because the PS3 already has the drive built in and has had it since day one this can only mean good news for Sony and the PS3. All the pundits will have to break out their forks for a little humble pie as the system that "forced" a hi-def format onto the masses will now make more sense and seemingly prove Sony's 10 year plan as sensible.

    As for the devs there's little chance they would even make games for this mystery system but how long will they hold out before they start getting antsy for all that extra disc space (I'm looking at you Blue Dragon and Assassin's Creed)? Ultimately making games on HD-DVD is the kiss of death for MS. It will prove that Sony was right with a higher capacity format.

    Lastly, this thing will NOT be cheap. Now that the $399 SKU is out it's only a matter of time before that system sees a price drop (maybe $349 in another 6 to 9 months) which will be the least expensive Blu-Ray player on the market (likely). The HD360 (or Elite Plus, Elite HD, whatever) will probably retail for no less than $500 with all the features they're throwing in. I'll stop now because honestly it's just sad that it had to come to this.

  • SnuffDaddyNZ

    Posted Oct 22, 2007 2:47 pm PT

    There's no reason to put a drive in the 360 because you can already buy the external addon, and I don't think that people are buying the 360 to watch HD-DVD, unlike PS3 where the Bluray is probably driving 40 percent of sales.

  • brucies_bubbles

    Posted Oct 22, 2007 12:15 pm PT

    So there is going to be 4 360 consoles?
    Come on and get off the grass

  • PS2Fan4Life30

    Posted Oct 22, 2007 11:15 am PT

    Ok there is only one reason to make a sku of the 360 with the HD-DVD built in and that is if they are looking at making it the new format for games. If it were to remain just for movies than there is no need as you can buy the external HD-DVD drive the the 360. I know developers are yelling at MS for more disc storage. So if this does come to fruition then odds are 360 owners will have a new format for their games. I want a 360 but I did have a feeling this was coming so I decided to wait and when and if the new sku comes out that will be when I get a 360. But for now I am happy with my PS3. P.S. All the consoles are in dire need of good Japanese turn based RPG's.

  • FreddoX12

    Posted Oct 22, 2007 11:08 am PT

    Wtf!? No one really uses their HD-DVD, nore would any real gamer use his console for watching movies. So why put a HD-DVD in a 360? maybe 5% uses their console for movie watching any way, and 0,2% uses is watching HD movies regulary.

  • Standard_222

    Posted Oct 22, 2007 10:50 am PT

    This is both surprising, and dissapointing. I think this marks the first time ever in history that game consoles were coming with "options." I don't know why it's so hard to come out with a standard console, that sells for one price, like they always have been. But then again, technology is kind of screwing things up. Like the whole HD-Format war... This looks like it could get ugly. But, I for one don't like the idea that even though i've paid for an Xbox, it looks like i'll be saving up more for another. I do have a solution to all of this though... Why don't game consoles, stick with games. Screw this whole "one media system that does everything concept!" Stick with making games, and this will make the systems cheaper and easier for everyone. Who uses their consoles for MP3 players, Windows media players, picture viewers, etc... anyway? Just let me play games with it. That's what I bought the thing for in the first place...

  • ChickenHounk911

    Posted Oct 22, 2007 10:46 am PT

    This is why the Nintendo Wii is number 1. 1 version, 1 price, that's all. Plain and simple, Sony and Microsoft are using the old "confuse them with choices" trick... ha ha! Go Nintendo!

  • SergeStorms

    Posted Oct 22, 2007 10:37 am PT

    I assume this will be another SKU, not a compulsary item. If that is the case, who cares. I think so far Microsoft bet right about having the console DVD for games. The cost and available technology has helped them in gaining their huge lead on PS3. If they want to add an option, then fine. Making it part of all 360's would be a mistake.

  • driftlikeu

    Posted Oct 22, 2007 10:31 am PT

    anybody feel like an idiot for believing what mircosoft sold us when they first said they was no way they would ever build a hd dvd xbox 360 when will the addons end why can't we get a complete unit straight out the box we didn't buy a windows operating system where you are always getting updates did we

  • pachucheng

    Posted Oct 22, 2007 10:31 am PT

    Enough of the stupid format wars and time to enjoy the GAMES.

  • cashmonkey78

    Posted Oct 22, 2007 10:28 am PT

    I hate how many electronics companies are pulling the "iPod sales" style where they just keep on making small upgrades to an item, package it as the next version, and sell even more. It's not fair to the consumers because we're stuck with a system that costed more (at the time) yet has much less packaged into it. Nickel-n-dimin'

  • devilmaycry2020

    Posted Oct 22, 2007 10:22 am PT

    If this is true it would be the dumbest thing in the history of M$ and the best thing for the PS3

  • gog8tors

    Posted Oct 22, 2007 10:11 am PT

    I just hope they hurry up with it. I cant wait. I have the HD-DVD player but would love for it to be internal so the games can be in full 1080P as well. Hurry up Microsoft!! Dont make us wait to long.

  • EvilTaru

    Posted Oct 22, 2007 10:05 am PT

    MS doesn't need to add yet another tier to their already bloated list of skus for the xbox360, the arcade version with no hard drive is already going to splinter the userbase further and makes it harder for developers to implement hard drive related features.

  • APOLLOCJD

    Posted Oct 22, 2007 9:59 am PT

    I would expect the an internal HD-DVD drive wodl put the 350 at par with the Ps3's 40GB and 80GB models

  • THEMOD3158

    Posted Oct 22, 2007 9:56 am PT

    would this mean we'll also be seeing HD-DVD games?

  • Agermemnon

    Posted Oct 22, 2007 9:50 am PT

    If this gets the go ahead then it's getting closer to what Microsoft want and thats a , easy to use Multimedia box under you're tv . i hope a restyle is in the workings or if not at least make the white plastic a high gloss rather than the dull off white it is at the mo .

  • Titanicles

    Posted Oct 22, 2007 9:42 am PT

    Will this mean they will release games on HD-DVD format, otherwise it might as well be separate. But if they do then what about the rest of us. I don't really see the point. I am going to end up having to sell my current 360 aren't I. What I would do is charge £50 ($100) or thereabouts, for people to send their 360 in and get the drive replaced and the wifi etc. installed.

  • Superman_legend

    Posted Oct 22, 2007 8:55 am PT

    I think this is actually a very good idea; not to say it doesnt have possible negative things about it but I do think the good out weighs the bad by a long shot. I think everyone who owns a 360 should have a right to own a 360 with wifi, 1080p, and a built in HD-DVD if they want one. Which they kind of should of did with the elite. As for cost we dont know all the added benefits with this new package it might be more than worth it for some. It might be useless for others. Anyone can knock microsoft on the 360 as much as they want its there opinion but atleast they gave there system an updated 3 year warranty which is costing them millions. Also they havent taken away system package available there still the original core system all the way up to the elite. So this system has the most options to get exactly what you want to save money. Not force you to get what you dont want. I want a wifi 360, with built hd-dvd, tivo, mp3 player, 1080p and huge hardrive just hope they build it right. Thing is if you dont have to get it so whats to complain about. And it usually drops the price on the other 360 package which is a good thing for most. Only thing is the value of your older system package goes down a little. Hey and whats funny about that is when you think about it that was going to happen eventually anyway and a pc goes down in value in everyday because there is always a better pc, your car value, etc. Stop hating and get in where you fit in. And save money. (Note to self: Next stop 1080p HD Definiton Wii.)

  • TheJamin

    Posted Oct 22, 2007 8:29 am PT

    EmperorSupreme First they turned it black, then they added HDMI, last I read they wanted to do 3d online, now they want to add HD-DVD. I guess Ken Kutaragi, father of the Playstation PS3 was right all along. X360 is looking more and more like a PS3 wannabe. lol except the 360 has a stable frame rate :O

  • rfarmer52

    Posted Oct 22, 2007 8:24 am PT

    In my opinion either way they go, one of the companies (Toshiba or Microsoft) is hosed. It is in Microsoft's best interest to NOT include the HD-DVD player into the system. One of it's strong suites is that they have not "pushed" the format onto their customers, but allowed it to be an option. If they change, it will drive the price up and become less attractive compared to the PS3. Although I'm sure they'd continue selling the models without the drive installed, the mere cost of producing these high end models, and possibly not seeing a return on them could be costly to Microsoft.

    It is critical, however, for Toshiba to get the HD-DVD drive installed on the 360 out of the box. The clear reason why the Blu-Ray format is winning is because the PS3 has it equiped out of the box. With the 360 currently ahead in the current gen console war, Toshiba would clearly benefit and gain HD sales if the Xbox were equiped with a HD-DVD player as opposed to it being an add-on (which are not selling well).

    So like I said, it is in Microsoft's best interest not to add it, and in Toshiba's to add it... either way, one of these solutions will hurt the other.

  • vacancy009

    Posted Oct 22, 2007 8:19 am PT

    @Angel, this doesnt change anything for developers. It will read a standard DVD just like all the Xbox games. Microsoft is just offering an "OPTION" for those that want to have integrated HD-DVD. It is nothing like the "REQUIREMENT" that eveyrthing be Blu-Ray like with Sony's product.

  • qiwihead

    Posted Oct 22, 2007 8:18 am PT

    I don't need the HD-DVD drive, but I sure hope that MS offers the new multimedia software and Tivo capabilities as a download for existing 360 owners.

  • eViL_kA

    Posted Oct 22, 2007 8:14 am PT

    Maybe MS will call this sku Xbox 360 "Complete".

  • gshell

    Posted Oct 22, 2007 7:38 am PT

    imho...if they do make an hd-dvd xbox360 ms is going to have to drastically cut the price of their other models. the elite is already $449 with just a regular dvd player. how much would the hd-dvd 360 cost?

  • chamber303

    Posted Oct 22, 2007 7:32 am PT

    When SONY had release there system with a blu-ray drive, alot of people did not like that idea because of the price being high.

    Right now, the console is cheaper but yet, people still say that it is expensive.

    You gotta be kidding.

    The we have MS with there 360.
    Thwy want to add a new sku#? again?
    how many diffrent consoles does this make?

    Way to go SONY, 1 system that has everything from the begining.

    We have Mr Bill ripping off everybody and all you 360 idiots are falling for it while talking bad about the PS.

    Stick to your 360 and your HD-DVD and stop talking about PS.

  • cid67

    Posted Oct 22, 2007 7:11 am PT

    the hd-dvd thing seems doable in a way thats affordable. with the recent die shrink to 65nm I would think that the chips are cheaper to produce and if you put the hd-dvd drive in the system you don't need to also have a dvd drive, just the red laser. so right there its got less parts than the current 360 with the hd add on, not to mention the shell and all the other stuff you wouldn't have to include so, it could be cost effective. if they do this and also keep the 360 thats currently on the market it would seem like a good option for those wanting the hddvd add on from the get go. they would have to keep the add on for those who don't want or need hd-dvd at that moment and just want a game system though. does kinda suck for people who would have preferred an hd-dvd equipped version but bought early. this is the nature of technology. theres always something better around the corner but you have to buy sometime. just remember, If you cant be with the one you love, love the one your with .

  • AngelCage

    Posted Oct 22, 2007 7:00 am PT

    Wow, hdd less X360, Hdd equipped X360, hd-dvd equipped and ubber expensive x360 ... Way to go MS

    the core 360 is already a headache for developers, they don't need this.

  • jmartin1016

    Posted Oct 22, 2007 6:52 am PT

    Alright, I wonder how many different systems Microsoft will make. This will be like the 5th configeration of the 360. The PS3 is going through them quickly as well. It goes to show how competitive these two companys are with easch other.

  • Kenji_Masamune

    Posted Oct 22, 2007 6:34 am PT

    Funny how people still think that the crapbox is so much better when (if they do this included HD thing) they will finally be up to part on the PS3 system (things the crapbox doesn't have compared to PS3 - HDMI, a next gen DVD (more storage for true HD games), 1080p).. oh but wait.. yeah... it'll be more expensive than Sony's machine.

  • Musashimiatsu

    Posted Oct 22, 2007 6:25 am PT

    It doesn't matter that they come out with this system. I'm not an avid movie watcher so I probably wouldn't get an Xbox 360 system with a built-in HD-DVD drive. I'd probably buy the external one if it's still being sold by that time, but that would be quite a while after I purchase the 360.

  • vacancy009

    Posted Oct 22, 2007 6:18 am PT

    It all comes down to choice. With Microsoft you might eventually have the choice to get a built in HD-DVD drive. Sony's problem was that no matter what you were forced into Blu-Ray. Gamers arent really ripped off unless they bought the 360 to mainly watch HD-DVD's. (why would gamers do that? I don't know). It's not really pulling a Sony unless they move their game formats to HD-DVD. The big thing here though is it is an option for those who really want an HD-DVD drive in their console, There will still be a SKU without the HD-DVD for those who dont care to spend more for it. Don't be a hypocrite and say how you hate the format wars and want no part in it and then complain that MS has put out a console with a built in player that you didn't get.

  • robertd1138

    Posted Oct 22, 2007 5:34 am PT

    It seems odd that Microsoft and Sony are fighting over who has the biggest console and redefining their vision every 6 months and Nintendo is chugging along with strong sales and a clear vision. Microsoft and Sony seem to be getting closer to the PC market. The problem is that most console owners do not want that type of market. If they did, they would buy a PC.

  • johnmetcalf

    Posted Oct 22, 2007 5:09 am PT

    I bought the 360 on Day one. If they put a HD DVD drive internal they will severly irritate all of the early adopters. Especially the ones who bought the external HD DVD drive.

  • gandalf_storm

    Posted Oct 22, 2007 1:50 am PT

    its a good idea they are considering doing this, but as many other posters have stated, if you`ve already bought a 360 and its not going to used for games (as well) then its a little dissapointing.

    The price needs to be right as well, the 60gb PS3 is now only £350, so ms should set it around 325-250

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