While showing their Fall line-up of what’s to come, Toshiba demo’d an HD-DVD player that was being created in an alliance with Microsoft. Of course, they showed this new hardware well before the official announcement of its use by Microsoft.
If Toshiba were in fact working on the HD-DVD Xbox it would explain why they want to oust their original plan, making room for the fancier and more appealing model. Furthermore Toshiba spoke out saying that they will be using their HD-DVD format on the Xbox360, while Microsoft flounders over the announcement. Stay tuned for more
Thanks to Jacek M for the news!