Considering most companies have a policy of not addressing rumors, Microsoft sure has been a nattering Nancy lately. It appears that reports of Redmond including an internal HD DVD drive in the Xbox 360 console (as opposed to the external drive which they announced earlier this year) were wildly off base. A representative from the company said, "What we showcased at E3 was an external HD DVD drive, and we're sticking with that...So: no plans for an internal HD DVD."
Wow, way to keep your options open, Microsoft. First no price drop and now no internal high definition disc drive, which must perturb Toshiba just a little bit. That's either extreme arrogance or blissful ignorance talking. Time will tell.