After strong rumors circulating that Bill Gates would be announcing a new SKU for the Xbox 360, complete with a built in HD DVD player, Microsoft has shot the rumor down.

We have reiterated multiple times since launching the Xbox 360 HD-DVD Player that we have no plans to integrate an HD-DVD player in to the Xbox 360,” a spokesman told GameSpot. “We feel that offering the drive externally is the best way to give consumers the ultimate choice to create their own high-definition experiences.

Especially in light of Warners defection to Blu-ray, this would have been incredibly ill-timed, or perhaps very well timed move depending on whom you are asking. It is probably for the best that Microsoft isn’t making such an announcement, or, if they were planning on it, have quickly changed their minds in light of the troubling HD DVD situation. We’ll have to wait for Bill’s announcement tomorrow, but if the big announcement seems to evade us, we will know the HD DVD 360 has been scraped, and Microsoft has moved on from HD DVD. Or, if they have something else up their sleeves, they’ve been telling the truth and this has never been in the cards.

Tags: Hardware, News, Rumor, Video, Xbox360