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Xbox 360 to get an onboard HD DVD drive?

Microsoft will attempt to compete with the PlayStation 3 by releasing the XBOX 360 Ultimate with an onboard HD DVD drive, according to a gadget magazine.

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Ty Pendlebury has worked at CNET since 2006. He lives in New York City where he writes about streaming and home audio.
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  • Ty was nominated for Best New Journalist at the Australian IT Journalism awards, but he has only ever won one thing. As a youth, he was awarded a free session for the photography studio at a local supermarket.
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File this one under: no-brainer. Microsoft will attempt to compete with the PlayStation 3 by releasing the Xbox 360 Ultimate with an onboard HD DVD drive, according to Stuff magazine.

Is this the shape of the new Xbox 360 Ultimate?

Following the release of the recent Xbox 360 Elite, the device is rumoured to feature a 1080p HDMI output, onboard Wi-Fi, HD audio output, smaller 65nm architecture and quieter operation.

Stuff also claims that the new Xbox will connect to the upcoming Xbox with Microsoft Mediaroom (IPTV) service -- which will be unlikely to come to Australia, if past experiences with Apple TV are any indication.

The article doesn't quote any sources, and is probably more of a wish list than an actual product (the original rumour emerged in August 2007), but Stuff claims the device will be available in Q3 2008. If any announcement will be made, it is likely to be during Bill Gates' keynote on Sunday at CES in Las Vegas.

The Sony PlayStation 3 could be the device that will finally win the format war, and Microsoft won't rest on its laurels considering it has a stake in the HD DVD format.