Toshiba may have conceded in the HD war, that doesn't mean Microsoft will throw in the towel, even if its only with a new firmware update for the Xbox 360 HD DVD player. Log into Xbox Live and put in a HD DVD disc, you will automatically be prompted to update (adds support for network features and improves compatibility).

The writing was on the wall, as Microsoft officially announced that it "will no longer manufacture new HD DVD players for the Xbox 360, but we will continue to provide standard product and warranty support for all Xbox 360 HD DVD Players in the market. "

Toshiba America announced that it has completed a thorough review of its overall strategy for HD DVD and as a result of recent market developments, the company has decided to discontinue sales and marketing of HD DVD players, aswell as cease shipments of its HD DVD products to retail channels.

“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. As we’ve long stated, we believe it is games that sell consoles and Xbox 360 continues to have the largest next-gen games library with the most exclusives and best selling games in the industry. We will wait until we hear from Toshiba before announcing any specific plans around the Xbox 360 HD DVD player."

Microsoft released the X360 HD DVD Emulator, enabling film studios and disc authoring companies to test the behavior of HD DVD disc content, including encoded video and HDi interactivity, in a virtual environment before committing to burning a single HD DVD disc.

While the HD DVD vs. Blu-ray war is still waging, HD DVD has made progress today, as one of its main drawbacks, capacity, may have been overcome. At the 40th Steering Committee Meeting, Toshiba's latest triple-layer HD DVD ROM, which expands its capacity from 17GB up to 51GB, has been approved bringing it on par with Sony's dual-layer Blu-ray Disc. The new disc supports several file systems, like ISO 9660 and Universal Disk Format (UDF) and plays in current DVD players, while production cost remains virtually the same (thx TeamXbox).

Shortly after announcing the Xbox 360 game bundle for this holiday season, Microsoft unveiled yet another promotional campaign, this time to push the HD DVD format. Between Oct. 1, 2007, and Feb. 28, 2008, you get to add five free movies from the HD DVD catalog if you buy an Xbox 360 HD DVD player. On the other hand, if you buy an X360 at Wal-Mart, you get the HD DVD edition of "300" for free (which you can still watch on your regular X360).

After we previously had one of the PGR4 developers speaking out about their game being limited by the HD DVD (even though it was retracted shortly thereafter) Epic's VP Mark Rein made a similar statement. At the Edinburgh Interactive Festival Rein stated, "We'll compress some things. But you know, we may have fewer maps on the 360 version...Blu-Ray has definitely given us a lot of legroom."

PGR 4 tries to create an emotionally-charged racing experience, where players become attached to their careers, profiles and vehicles. Drivers will be rewarded with a growing fanbase that’ll cheer them on, react to their every move and support them through victory. A Bizarre Staff member revealed that PGR4 doesn't have a day/night cycle due to the limitations of the HD DVD disc.

Microsoft announced it will lower the price of its Xbox 360 HD DVD Player from $199 to $179 (United States only) starting Aug. 1, 2007, and will add five free HD DVD movies for anyone purchasing an X360 HD DVD Player between Aug. 1 and Sept. 30.

Arriving at retailers in North America, the U.K, France and Germany in mid-November 2006, the Xbox 360 HD DVD Player will retail for an estimated $199.99 in North America and 199/£129.99 in the U.K., France and Germany. The Xbox 360 HD DVD Player comes with the Universal Pictures’ blockbuster film Peter Jackson’s King Kong on HD DVD (for a limited time) and the Xbox 360 Universal Media Remote.

At the start of the Tokyo Game Show Microsoft revealed its lineup of nearly 110 high-definition games by years end in Japan, as well as availability date details and pricing for the Xbox 360 HD DVD player, and an update that will allow the Xbox 360 console to output full 1080p games and video.

At last week's electronics design show CEDIA EXPO 2006, Universal Studios Home Entertainment President Craig Kornblau came out in support of HD DVD, compared to Sony's Blu-ray. “The reviews are in and HD DVD is hands down the leader in picture quality, audio experiences and interactive capabilities that have never been seen before,” said Kornblau. Recent head to head tests either came out in favor of HD DVD, or resulted in a draw.

ATI Technologies announced today that Microsoft has chosen ATI's H.264 decoder for the Xbox 360 HD DVD player, bringing users sharper, more true-to-life visuals and smoother playback of high-definition content, up to six times the resolution of traditional DVDs all on a single disc.

According to Nikkei Net Interactive, Ricoh has developed a diffraction plate to be placed between the reader's laser and lens, allowing it to change the beam's spot size according to the media, either being CD, DVD, HD DVD or Blu-ray. A Ricoh spokesperson commented, "It will make it possible to build players and recorders ready for all formats, which will benefit consumers." Ricoh Technologies will unveil its new optical device this week at the International Optoelectronics Exhibition '06 in Japan.

Highlighting key consumer products such as Xbox 360 and offering the first broad demonstration of the consumer features of Windows Vista, Microsoft's Bill Gates showed how the company is delivering on its vision for a digital lifestyle where devices, services and applications work together seamlessly