July 3^rd, 2006 (1:18pm) - Microsoft has shot down reports, based on comments made by an Australian Toshiba executive, that Microsoft plans to release an Xbox 360 with an internal HD-DVD drive.

"We have no plans to release the Xbox 360 with an internal HD DVD drive," the company said. Its full statement:

"At E3 we showcased our Xbox 360 HD DVD player that is an external drive. Since launching Xbox we have retained a games first emphasis, but we also offer consumers the ability to build on our powerful platform, such as in combination with a Windows Media Center Edition PC. We feel that offering the drive externally is the best way to give consumers the ultimate choice to create their own high definition experiences. We have no plans to release the Xbox 360 with an internal HD DVD drive."

Earlier on Cesar Menendez, one of the contributors to official Microsoft blog Gamerscoreblog and Microsoft’s online community manager, said the company had "no plans" in line with the prediction made by Toshiba’s Mark Whittard.

"Saw a few stories online about an Xbox 360 with a built-in HD-DVD drive: not true," wrote Menendez on Friday. "We have no plans to release an Xbox 360 with an internal HD DVD. What we showcased at E3 was an external HD-DVD drive, and we’re sticking with that."

"We’ve always had a games-first emphasis with the Xbox, but some consumers can build on the platform - like by adding a Windows Media Center Edition PC. By keeping the drive external, we’re offering consumers a choice in creating their own hi-def experiences. So: no plans for an internal HD-DVD."