Toshiba misquoted, new Xbox 360 after all?

So first there was a rumor floating around about a new Xbox 360 SKU that would include an internal HD DVD player. Sometime afterwards Toshiba stepped up and denied the rumor, smashing any hopes that we would be able to minimize the number of cables in our home theater setup. Now Toshiba is back saying that they were misquoted.

Here's what Toshiba was quoted as saying by Stuff: "It's got nothing to do with us. But we know Microsoft doesn't want to include the HD DVD drive so as not to limit the user's experience." However, Toshiba says that it should have read "Toshiba has no comment to make on this matter. The Xbox 360 is not a Toshiba product."

That's a pretty big misquote. Rather than putting the matter to rest, Toshiba has just added fuel to the fire. So was their first quote just a mistake, or did they really say something they shouldn't have? I suppose we'll know one of these days.

Toshiba denies denying Xbox 360 with built-in HD DVD rumor [via engadget]