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http://www.kotaku.com/Heres an interesting tid-bit: Toshiba was showing off their Fall line-up the other day and demoed a HD-DVD that was being created in conjunction with MS. This, of course, was well before the official Xbox software announcement, but now attendees are starting to wonder if references to the devices ability to download games and play them may be tied into the Xbox software deal.
Could Toshiba be working on a HD-DVD Xbox? It would certainly explain why MS seems so willing to drop the original console like a bad habit, maybe they are making room for a new, fancier iteration of the original.
Oh, and the Toshiba folks also spilled the beans on HD-DVD and the Xbox 360, saying that the next-gen console will use the new format for its media and whining about how MS is dragging their feet on the official announcement.
For what its worth, MS officials told me that the week before E3 and reconfirmed it when I called them back days later. (Whos eating paste now Joel, stick that in your daily dose of Kielbasa and smoke it.)