Release in May 2008?

So the new Xbox 360 Ultimate may be released in May this year according to rumours at Smarthouse.

And of course its likely to feature the Blu-ray HD format. But don't be too quick to jump to conclusions, they may just allow HD movies to be downloaded via the intenet and then played from the Xbox.

It's something that Sony won't be turning their nose to either: Michael Ephraim the MD of Sony Computer Entertainment said: "We would welcome Microsoft to the Blu-ray stable. In fact it is quite logical for them as the PS3 has been very succesful in driving consumers to Blu-ray. In fact we believe that it has done more to win the format war than traditional Blu-ray player".

Interesting times!