Back in September 2005 Microsoft announced that the 360 will be supporting HD-DVD. Since then many have thought that Microsoft will be planning a new version of the 360 with an internal HD-DVD drive to draw par with the PlayStation 3’s inclusion of Blu-ray Discs.

In the past year however it has become to look less likely of an imminent HD-DVD equipped 360 release for several reasons. One because of Sony’s difficulties and delay in the manufacturing of Blu-ray drives with the PlayStation3, therefore temporarily removing the immediate need for a competing product. Also Microsoft’s announcement of the external HD-DVD drive at the Electronic Entertainment Expo in May 2006 coupled with rumours that this is as close 360 owners are going to get to HD-DVD 360 internal integration.

Digitimes article has sparked a new hope for 360 owners:

“Microsoft has started designing a new generation of Xbox 360s equipped with an internal HD-DVD drive and is selecting manufacturers in Taiwan to build the drive, according to sources in Taiwan’s optical disc drive (ODD) industry,” the publication claims. “If the process of selecting partner makers and subsequent certification goes smoothly, Microsoft may launch the Xbox 360 equipped with the built-in HD-DVD drive in the first half of 2007 at the soonest, the sources noted.”

Digitimes have posted many rumours in the past, some accurate….some not so accurate. It is hard to say one way or another on this one but Microsoft has been the bringer of great things in the past, let’s hope that this is only the beginning.