Sony recently announced that it plans to equip the PlayStation 3 with a Blu-ray drive that might give the Blu-ray Disc format a head start on the competing HD-DVD format. According to ign.com NEC's and Toshiba's response to Sony's move is to try to convince Microsoft to use their HD-DVD format in the Xbox 2.
Microsoft however
refused to comment on the specifications of the Xbox 2 according to Bloomberg
Source: ign.com
Microsoft used to be in that three fold stance for HD-DVD! lol! As soon as blu-ray announced they had made a blu-ray ROM which was not -R or -RW and actually could be used for movies, microsoft immidiatly said "Well, we'll be supporting both formats as time goes on" But never ever claimed to be part of HD-DVD after that! lol. 