This might be the news that HD-DVD enthusiasts have been waiting for.

In a story from Smarthouse.com, it looks like the next generation version of the Xbox could come with an HD-DVD player already built in. On the current system one is available as an add-on attachment.

According to a "Toshiba executive in Singapore" it appears that "an Xbox with a built in HD-DVD drive is critical. They and we are working on it. It also has to be more than a gaming machine. Microsoft recognize this. A version of the device may also be sold under the Toshiba brand name".

Scott Browning, a Marketing Director for "JB HiFi Australia's second largest consumer electronics retailer," stated, "The device is a lay down mis`ere and essential for the HD-DVD camp. We are told that one is coming. The PS3 has been extremely successful for Sony in getting Blu-ray off the ground and for Microsoft, the omission of a built in HD DVD player is set to hurt sales going forward as consumers are aware that the PS3 comes with a Blu-ray player."

Should this new Xbox become a reality it is expected to be "released late in 2008 or at the 2009 CES show in Las Vegas."