Source: Japanese media outlets, including Mainichi Interactive and Zakzak.

　　The official story: See below.

　　What we heard: Less than a week after the launch of the Xbox 360 in Japan, various news sites claimed that a new version of the console would be shipping as early as next year. According to the reports, the new and improved Xbox would reportedly sport a drive that runs HD-DVDs. HD-DVD media can hold approximately 15 gigabytes per layer (30GB for dual-layer discs), versus the DVD-9 standard's capacity of just 4.7GB per layer (8.5GB dual-layer discs).

　　The backers of HD-DVD, which include Microsoft, are currently in a battle with the backers of the Blu-ray disc, which include Sony. The Blu-ray format, also known as BD-ROM, can handle about 23GB per layer, or around 45GB per dual-layered disc, and will be supported by Sony's next-generation console, the PlayStation 3. An HD-DVD-equipped 360 would be able to compete with the PS3 in terms of storage capacity, which is becoming a major concern, given the massive amounts of data required for high-definition gaming.

　　For that very reason, Microsoft has taken criticism for not considering incorporating a next-gen media format for its next-gen console. The most likely reason for the omission is that adding an HD-DVD drive (which Toshiba hasn't even completely finished) would spike manufacturing costs for Microsoft, which reportedly already loses more than $125 on every 360 sold.

　　Though an HD-DVD-equipped Xbox 360 would make for some snazzy games, the reports from Japan were, sadly, a case of misinformation. Hours after the reports of the super-Xbox 360 went up, most sites pulled the news down on the heels of a brisk response from its maker. "Microsoft has not made any announcements in either America or Japan regarding possibilities of a next-generation disc drive to be equipped on the Xbox 360. We do not have any plans to release an Xbox 360 equipped with a next-generation DVD [drive] at the current time," the company said in a statement.

　　Given Microsoft's support for the format, will there ever be an HD-DVD Xbox 360? Not any time soon, according to Microsoft Japan's Xbox operation chief, Yoshihiro Maruyama, who has publicly stated that the format "won't be used for gaming purposes for a while."

　　Bogus or not bogus?: 15 gigabytes of bogus, unfortunately. Don't think that Microsoft isn't thinking about it, though.