"Richard Doherty, an analyst from research firm Envisioneering Group, predicts that tomorrow Bill Gates’ main message at his CES keynote will focus Windows Vista, the next-generation Windows, but Doherty also thinks Gates will talk about HD DVD as part of the Xbox 360.

Microsoft has denied in several opportunities that it is planning a HD DVD upgrade for the Xbox 360, but last year Bill Gates said 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 said at a joint news conference with Toshiba. “We are looking at whether future versions of Xbox 360 will incorporate an additional capability of an HD DVD player or something else.”

Bill Gates’ CES keynote is only 24 hours away so tomorrow we’ll know if the analyst was right or if it was pure speculation based on the recent HD DVD, Blu-ray Disc war hype.

We’ll have more on HD DVD for the Xbox 360 as it develops." [link]