Microsoft overlord Bill Gates is set to make an "important announcement" regarding the Xbox 360 at next week's CES show in Las Vegas, reports The Seattle Times.
The paper doesn't say exactly what Gates' revelation will regard at the electronic show, but it does go on to speculate that it might be the reveal of yet another Xbox 360 SKU with built-in HD-DVD playback.
"Microsoft may be preparing to license the Xbox gaming platform to consumer-electronics companies," says Seattle Times columnist Brier Dudley. "In particular, Microsoft could work with Toshiba to develop a digital video recorder with a hard-drive, high-definition HD-DVD drive and Xbox gaming capabilities.
"They're already allied against Sony and other backers of the Blu-ray DVD format," he continues, "and Toshiba could help Xbox finally penetrate the Japanese market.
"Microsoft could also make a splash by announcing plans to give the Xbox 360 an internal HD-DVD drive, putting it on par with Sony's PlayStation 3 that has a built-in Blu-ray drive."
At least year's CES, rumours were abound on the now long since unveiled Xbox 360 Elite, which built on the previous console SKUs with a bigger hard drive and built in HDMI port.
Built-in HD-DVD playback is the logical next step for the 360, but we're not so sure about this video recorder malarkey - anyone remember the Panasonic Q?
We'll be strutting the CES show floor next week and will of course keep you bang up to date with whatever Bill reveals.