What Toshiba has said sounds right to me even though Microsoft deny it.
Maybe X360 games won't run off HD-DVD discs but whats to stop them releasing another model into the market and pitching above what is now the Premium Pack just to supply an all in one unit, or dropping the Core Pack from the range, reducing the price of the Premium Pack to the Core Pack price and pitching it there (this could be the rumoured price cut
Xmas 360 Price Drop...)
This makes perfect sense to me and would really help Microsoft get a strong foot hold against Sony in the Next Gen Console Wars.
But this is just my opinion.
What do you think?