@ All of you Fanboys
I have not joined either camp but from a neutral observers point of view this move [if there is any truth in it] does reek of copy cat tactics by Toshiba M/Soft.
Sony may have joined the party late but some could argue that they did this to ensure that they got the hardware right. M/Soft have added HDMI, made HDD a requirement and now adding HD-DVD. How long do you think it will be before having an HD-DVD will be compulsory???
A quick Google on price reveals that an Xbox Elite + HD-DVD can be had for £408.89. Yes I am sure that some of you could find a package for a few pence less but like I said it was a quick Google. Can we expect an Xbox 360 with an integrated HD-DVD to be a similar price? This makes the £349.99 asking price for a PS3 seem a bargain.
Both consoles have their merits and pit falls but if M/Soft now integrates HD-DVD into the Xbox it will be as good as admitting that they are in fact now playing catch-up and if/when they make HD-DVD compulsory risk alienating a large proportion of their user base.