Speaking at the Xbox Summit 2005 in Japan, Microsoft Chairman Bill Gates revealed plans for the Xbox 360, the new Microsoft gaming console to include HD-DVD drives.

Considering that such a decision would postpone the launching date, initial Xbox 360 models will ship with standard DVD drives, once HD-DVD systems are go, the Xbox will incorporate them reports Softpedia.

Xbox 360 incorporating HD-DVD is nice push for its creator Toshiba in battle for next generation DVD. Sony's Play Station 3 will incorporate the Blu-Ray standard.

Gates also said that the Microsoft-Toshiba alliance is not a unilateral partnership and that many of the equipments manufactured by the Japanese company, such as the Tablet PCs will be based on Longhorn, Microsoft's future operating system.