For some time now rumors have been building that during CES (Consumer Electronics Show) Microsoft will unveil a new 360 SKU, the Xbox 360 Ultimate, but now Microsoft is saying that this is not true.  Despite rampant speculation Microsoft has done something unusual and actually killed a rumor rather, than giving the regular “no comment” reply. A Microsoft rep speaking to GameSpot officially debunked the rumor saying: “We have reiterated multiple times since launching the Xbox 360 HD-DVD Player that we have no plans to integrate an HD-DVD player in to the Xbox 360. We feel that offering the drive externally is the best way to give consumers the ultimate choice to create their own high-definition experiences.”

The features of the rumored SKU were 1080p HDMI video output, built in Wi-Fi, a 65nm CPU and GPU, as well as a 320 GB hard drive. But most importantly the console would contain a built in HD-DVD player. All of this was believed to be revealed during Bill Gate’s final address at CES as the chairman of Microsoft. There have always been rumors of an Xbox 360 containing an internal HD-DVD player, but they began to get hotter when it was reported in October that Microsoft was working with Toshiba (creator of the HD-DVD format) on a 360 console that would contain an internal player. So now that that rumor is deflated is the general speculation of Mr. Gates making a big announcement still true, and if so what is it?