Microsoft says they have no plans to add next-generation DVD player to future versions of the Xbox 360. "There are currently no plans to release an Xbox 360 equipped with a next generation DVD player." a Microsoft spokesperson told IGN.

[One day after Japanese reports sprung up about the future of HD-DVD and Xbox 360, Microsoft has issued an official response.

Microsoft lists two points in response to the reports claiming that it has, as of the 14th, entered into final development phases with Toshiba and other HD-DVD backers to release an HD-DVD version of the Xbox 360 some time next year after Spring. The first point: "Microsoft, in both America and Japan, has not announced anything regarding the possibility of a next generation DVD drive being placed in the Xbox 360." And the second point: "There are currently no plans to release an Xbox 360 equipped with a next generation DVD player."
While the second point may be true, we'll point out that the first point is somewhat of a grey area. Microsoft, both in America and Japan, has made comments regarding HD-DVD appearing in future revisions of the Xbox 360. Whether more specific comments on the matter were shared yesterday with the Japanese press, either in an official context or while everyone was drunk off hot sake, is the question.]

Source IGN