Here's some more grist for the CES rumor mill.
Microsoft chief Bill Gates will deliver the opening address to kick off the International Consumer Electronics Show this Sunday in Las Vegas, and reports have been circulating as to what he might address. One of the rumors is that the XBox 360 "Elite" model will be discontinued, and speculation has it that it will be replaced by the XBox "Sku" which will come with an internal HD DVD drive. The move would level the playing field with Sony's Playstation 3 which has an internal Blu-Ray drive.
Of course, none of this has been confirmed yet, and likely won't be confirmed until after Gates' speech.