Microsoft released a statement:"We do not believe the recent reports about HD DVD will have any material impact on the Xbox 360 platform or our position in the marketplace. As we’ve long stated, we believe it is games that sell consoles and Xbox 360 continues to have the largest next-gen games library with the most exclusives and best selling games in the industry. We will wait until we hear from Toshiba before announcing any specific plans around the Xbox 360 HD DVD player. HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room along with playback of the DVD movies they already own."
Source: Gamescoreblog
Also, it looks as if MS is just waiting for Toshiba to announce they have dropped HDDVD, Joystiq had this story on a rumor that a BluRay add on for the 360 is already complete and could be to the market in 3 months.
Joystiq Article
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