There have been some rumors floating about the interweb of yet another Xbox 360 SKU. This time it would include a built-in HD DVD player in the console, rather than having to rely on an external unit for your high-def needs.
Unfortunately, Toshiba (who was purportedly making the internal drive for the console) has sort-of denied this rumor. Stuff's UK magazine has the following quote from Toshiba, “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." Stuff's official website has it a little differently, they've quoted Toshiba as saying "Toshiba has no comment to make on this matter. The Xbox 360 is not a Toshiba product."
Personally, while I think the prospect of having an internal HD DVD player is cool, I think Microsoft has enough SKUs out there. They need to cut down on what they have before they go adding too it.
Toshiba Kind Of Denies HD-DVD 360 [via kotaku]