Toshiba insiders actually leaked the announcement on Saturday that the company was preparing to give up the format battle for next-generation DVDs.
Microsoft Corp does not expect sales of its Xbox 360 game console to suffer if Toshiba Corp discontinues HD DVD technology, Microsoft said in a statement on Monday.
"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," the company said. "We will wait until we hear from Toshiba before announcing any specific plans around the Xbox 360 HD DVD player."
Hot on the heels of the weekend news, the rumors of an Xbox 360 Blu-Ray player began resurfacing.
The latest rumor comes by way of the Australian website SmartHouse, which is reporting that Microsoft has been secretly working on the peripheral, which could be released astonishingly quick.
Insiders at Microsoft in the USA have told SmartHouse that Microsoft has already configured a standalone Blu-ray player that can be connected into an Xbox 360 and that subject to internal marketing and sales approvals the model could be on sale within 3 months," reports the website.