"Today, at a joint news conference in Tokyo, Microsoft and Toshiba announced they will strengthen their joint development of PCs and consumer electronics goods and will work together on HD DVD technology.
At the press conference, Microsoft Chairman Bill Gates revealed that the Xbox 360 video may incorporate in the future the next-generation DVD format developed by Toshiba.
“The initial shipments of Xbox 360 will be based on today's DVD format,” Gates confirmed. “We are looking at whether future versions of Xbox 360 will incorporate an additional capability of an HD DVD player or something else.”
The incorporation of HD DVD technology would put the Xbox 360 on par with the PlayStation 3, at least in what regards to optical storage.
The next-generation videogame and entertainment system from Sony will use Blu-ray Disc technology, a competing next-generation DVD format.
A single-layer Blu-ray Disc can hold up to 25 gigabytes of data and a double-layer Blu-ray Disc will hold up to 50 gigabytes of data.
Although Blu-ray Disc can technology hold more data per disc than HD DVD, the lower manufacturing costs and compatibility with the current DVD format makes HD DVD more consumer-friendly.
We'll have more on the possible incorporation of HD DVD technology to the Xbox 360 as it develops."