An Australian website has reported Toshiba as saying Microsoft will release an Xbox 360 with a built-in HD DVD drive by the end of next year.
As with every 'Microsoft to add HD DVD to 360' rumour - currently at about one a month - Microsoft is dismissing the claims. But so is Toshiba.
A spokesperson for Tosh told us: '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.'