Xbox2 May Have HD-DVD

Moving ever closer to becoming the premiere digital home entertainment system, Microsoft leaked plans that suggest the Xbox2 will come equipped with an HD-DVD drive, according to an IGN.com article.

The move could easily push the price of the next-generation game machine much higher than originally predicted, but with the transition to digital television looming – and better quality television sets rolling off the production lines – it's likely Hollywood will want to push the higher-quality digital product.

The high-end Xbox2 would then serve as both a game device and a next-gen DVD player, something families may seek out instead of purchasing a lower-end game console and a high-end entertainment system.