As a result of recent decisions made by Toshiba, Hollywood studios, and retailers, Microsoft plans to withdraw from HD DVD. Xbox will no longer manufacture new HD DVD players for the Xbox 360, but we will continue to provide standard product and warranty support for all Xbox 360 HD DVD Players in the market. As we stated earlier, we do not believe this decision will have any material impact on the Xbox 360 platform or our position in the marketplace. HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room, along with playback of the DVD movies they already own.

Quote from: Serious

Just pointing out that its official, no other link does that

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http://www.gamesindustry.biz/content_page.php?aid=33247
100% official Toshiba fully back out and as stated if this option was taken it would mean they had full talks with the others involved and committed to the format and that have started or have already sorted what to do - ala blu ray.

http://www.tekforums.co.uk/posts/list/30/11391.page
My post

"It should be consumer choice; and if thats the way they vote, thats something well have to consider," Penello told the Reuters news service during the 2008 Consumer Electronics Show in January. Since then, though, decisions by retail giants Wal-Mart and Best Buy as well as online rental house Netflix made up the publics mind for it, causing Toshiba to finally abandon HD DVD production last month.

Citing an unnamed "senior executive," the Financial Times said that Sony and Microsoft are not simply discussing a successor to the Xbox 360s now discontinued, dirt-cheap external HD DVD drive. The newspaper said that there is also the possibility of an internal Blu-ray drive being incorporated into a new, more expensive "premium" 360 model, as it is already in the PlayStation 3. Thusly, Sony would earn royalties from sales of a rival console--a first for the game industry.

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Microsoft backed Toshibas HD DVD in its losing effort against Sonys Blu-ray in the next-gen disc format wars, but it doesnt appear to be holding grudges. At the companys Mix08 Internet conference in Las Vegas yesterday, Microsoft CEO Steve Ballmer confirmed that Microsoft will be working with Blu-ray, according to a Seattle Post-Intelligencer report.

"Weve already been working on, for example, in Windows, device driver support for Blu-ray drives and the like, and I think the world moves on," Ballmer said. "Toshiba has moved on. Weve moved on, and well support Blu-ray in ways that make sense." The report doesnt mention the Xbox 360 or the hypothetical Blu-ray add-on that has been rumored of, hinted at, and reported on.

http://www.gamespot.com/news/show_blog_entry.php?topic_id=26276872&sid=6187414&om_act=convert&om_clk=newstop&tag=newstop;title;2

This is a good quote from Sony:

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"If Microsoft wants to release Gears of War 3 on a Blu-ray Disc, I think we can make that happen,"

Sony Computer Entertainment Americas vice president of product marketing Scott A.

As of press time, Microsoft had not returned requests for comment on the issue in light of Ballmers presentation. However, the company had already addressed the possibility of an Xbox 360 Blu-ray drive earlier this week, with a representative saying, "We have made no such announcement. Games are what are driving consumers to purchase game consoles, and we remain focused on providing the largest library of blockbuster games available."

Those quotes say Sony and Microsoft are talking about a next gen console having a Bluray player.  Which its bound to if were not at streaming all content.

The only line from Microsoft is:

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As of press time, Microsoft had not returned requests for comment on the issue in light of Ballmers presentation. However, the company had already addressed the possibility of an Xbox 360 Blu-ray drive earlier this week, with a representative saying, "We have made no such announcement. Games are what are driving consumers to purchase game consoles, and we remain focused on providing the largest library of blockbuster games available."

No closer than talk still.  Times running out on your 3 months...

MS "No Plans For BR"

http://www.bit-tech.net/news/2008/03/14/ms_no_plans_for_blu-ray_on_xbox_360/1