June 28^th, 2005 (5:06pm) - In the recent move by Microsoft to support Toshiba’s HD DVD format, Bill Gates has confirmed that the company is thinking about future revisions of the Xbox 360 hardware, in which they may incorporate a HD-DVD drive into the console at some point down the line.

"The initial shipments of Xbox 360 will be based on today’s DVD format," Gates explained. "We are looking at whether future versions of Xbox 360 will incorporate an additional capability of an HD DVD player or something else."

While the addition of a HD-DVD drive to Xbox 360 would allow newer models play HD movies stored on the HD DVD format, it seems that the extra capacity format might not be used to the advantage of game developers, since their titles would then not work on first-generation hardware.