The new Xbox 360 Sku will replace the current Microsoft Xbox 360 Elite console which has been rumored for a little while now to be discontinued shortly.
The Seattle Times Brier Dudley has stated that Bill Gates is going to talk a great deal about the Xbox 360 at CES, touting the success of the console with the higher games sold per console attach rate compared to the Nintendo Wii and Sony PS3.
The reports are that Microsoft may be working to bring out a brand new Xbox 360 Sku which will have a built-in HD-DVD drive.
The other news is that Microsoft may be ready to license the Xbox gaming platform to consumer-electronics companies. This would mean that they could license the hardware to companies such as Toshiba to develop an Xbox 360 with a digital video recorder and hard drive.