Quote from avs.forum:

More confirmation...

"Sources I'm talking to at the company suggest that an announcement could come soon that Microsoft will unveil a new version of Xbox 360 featuring a built-in HD-DVD player and HD tuner. The device might be officially unveiled during Bill Gates' keynote at the upcoming Consumer Electronics Show in January, which could be a bummer since it misses this upcominhg holiday shopping season."

http://www.cnbc.com/id/21423304