Rumors have been floating around the past few days that Bill Gates will be making some surprise Xbox 360 related announcements in his final CES keynote on Sunday. According to the rumors, he will announce that Microsoft will incorporate an HD DVD drive and DVR functionality into the Xbox 360 by partnering up with companies like Toshiba. Essentially, it would be a consumer electronics device that would have the ability to play Xbox 360 games.

These rumors are pretty interesting, so I thought I’d share my two cents. DVR functionality wouldn’t surpise me at all, since MS has already told us about their plans for IPTV on the Xbox 360. The HD DVD drive, on the other hand, is a little harder for me to swallow. On one hand, I agree with the thoughts of Michael Bay, that MS would rather both formats lose so that digital distribution can become the next “format” of choice. On the other hand, a consumer electronics device would be a great way to introduce “non-core-gamers” to the Xbox 360, since that is the market that seems to elude Microsoft at the present time.

Anyway, MS hasn’t done the best job of keeping their secrets in the past, so I think it’s anyone’s guess at this point. What are your thoughts?

Link: Visions of Gates’ keynote swan song [Via Xbox 360 Fanboy]