Moore explains to Japanese electronics website, ITMedia that if the HD-DVD format looses out to the Sony backed Blu-Ray architecture, Microsoft could release the add-on to remain competitive with Sony's PS3. He justifies the use of external drives as opposed to having it built internally like the PS3's Blu-Ray drive by stating that it is yet unknown which format will eventually win, and by having the option to provide for either outcome leaves them with enough breathing room to maneuver; a luxury Sony may not have if the outcome doesn't fall into their favour.
Chances of that happening however are slim. Those good old anaylsts are predicting that Blu-Ray has the edge over HD-DVD for the time being, and with many major film studios already planning to release content on Sony's propreitary format, they just may have a point. But with Microsoft now willing to provide for the format, it might not be all bad news for the new kid on the gaming block.

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