Bill Gates announced that the Xbox 360 will have an HD-DVD drive, just not for launch. From the article: "According to the statements made by Bill Gates in Japan, Xbox 360, the new gaming console, will include HD-DVD drives. Considering that such a decision would postpone the launching date, Microsoft will equip the initial models with classic DVD drives, and only after the new HD-DVD are ready, the Xbox will incorporate them."  
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