In a statement issued in Seattle at Microsoft's headquarters, a company spoksperson said:  "We do not believe the recent reports about HD DVD will have any material impact on the Xbox 360 platform or our position in the marketplace," the company said. "We will wait until we hear from Toshiba before announcing any specific plans around the Xbox 360 HD DVD player."

Xbox 360 supports a plug-in HD DVD accessory that allows customers to view high definition DVDs produced only with this Toshiba technology. Toshiba sources said on Saturday that the company is preparing to exit the HD DVD business, thereby surrendering a two-year battle to control the format of next-generation DVDs.

Customers would be left to buy high-definition DVDs produced with Blu-ray, an alternate technology controlled by Sony. The Microsoft statement pledged that Xbox 360 customers would continue to be able to consume high-definition movies, television programs, and DVDs they already own.

In January, a Microsoft executive said the company would be open to supporting Blu-ray technology for its Xbox 360 machine.