Owners of the Xbox 360 HD DVD add-on shouldn't go trading them in for $50 just yet. According to Microsoft Game Studios Corporate Vice President "there is still enjoyment to be had" from that defunct piece of entertainment technology.

As part of a Q&A with GameDaily, Kim talked up the features of the outdated add-on, including a library of over 500 HD DVD movies (and growing not growing) available at clearance prices (because they're being cleared out). The drive also lets you have a movie and a game disc in the system at the same time, meaning you can switch from Halo 3 directly to watching August Rush without having to get up! Finally, the HD DVD drive adds two extra USB ports to your 360, meaning you can charge your DualShock 3s that much more easily! Yes, the HD DVD drive is truly a bargain, even without new content. Get yours today!

Although the rumor started by Smarthouse that a non-Microsoft branded Xbox with built-in HD DVD drive sounds improbable, Stuff.tv got UK Toshiba to give a "no comment" on the matter. Despite the Stuff.tv headline saying, "Toshiba says no to new Xbox 360 HD DVD rumour," the word "comment" is actually missing between "no" and "to." Which, in essence, means we're actually right back to where we started -- with this rumor still floating out there.

An HD DVD built into the Xbox 360 is always possible, but even by the original rumor's timeline, the thing wouldn't even be announced until late next year. With so much extra stuff built into it and without Microsoft branding, it sounds like a load of crazy talk. Mind you, we're getting used to crazy talk around here, so anything is possible.

Self-described Australian "lifestyle technology guide" Smarthouse is citing "a senior Toshiba executive in Singapore" as saying that Microsoft and Toshiba are working on a new Xbox 360 with a built-in HD DVD drive. "An Xbox with a built in HD DVD drive is critical. They and we are working on it," the unnamed executive told the site, adding that the system might have Toshiba branding rather than Microsoft (Panasonic Q, anyone?). As if that weren't enough, the article also hints at the possibility of wireless networking, an HDTV tuner and and MP3 player dock for the super-system, which would at the point probably have the MSRP of a small house.

This isn't the first time that rumors of an internal HD DVD drive for the 360 have leaked out, and it's just as hard to give them much credence now. The HD DVD-free system is soundly beating the Blu-ray equipped PS3 in sales and the $179 external drive is already serving the smallish segment market that wants high-def movies. Then again, with Blu-ray movies threatening to run away with the high-def movie crown and developers saying additional storage space is a must, maybe Microsoft is finally ready to make a strong move toward the format.

Or maybe not. According to Smarthouse, the new device won't be announced until late 2008 or even the January 2009 CES. We're not holding our breath but we're not exactly ignoring the possibility either.

As states pass legislation to curb the distractions of drivers, we can't help but agree with one bit of anti-gaming legislation: gaming and driving laws. Considering the number of people that have either come close to, or have fully experienced, the fun of somebody hitting your car because they are on their cell phone -- we're cool with many states attempting to pass gaming and driving laws. If they try to pass coffee drinking and gaming laws there'll be some drama though.

Approximately 12 states are trying to forbid drivers from playing video games or using computers and/or fax machines while they drive. Pity the person who still faxes and fear the fool who does it driving. The New York Senate, although having a slew of crazy video game bills, did recently pass S634-C, which should stop gaming and driving. But having a law and enforcing it are two separate worlds. It is expected to be finalized when the Assembly Codes Committee comes back from summer recess.

[Via GamePolitics]

FlatOut: Ultimate Carnage is nearly ready for the Xbox 360, and a new trailer gives a glimpse of the reckless action. These sorts of driving/crashing games are tough to judge from a trailer clip -- or misguided soundtrack -- so we're holding our applause or disappointment until trying the title. But we won't let that stop you from heaping on the hype, or dousing it like Kaiser Soze blocking a makeshift fuse.

What do you think? Watch the trailer after the break.