Leaked news supposedly from an American retailer in the States suggests a new Xbox model is incoming.

An employee at Gamestop has revealed the store has been given information about a a new Xbox "SKU" for the Xbox "Ultimate".

Apparently with the recent decision from Microsoft to incorporate HDMI connectivity into all "Premium" Xbox units, the "Elite" model is being dropped down to Premium level, leaving room for a new console at the top of the range.

Microsoft recently dropped the price of their 360 consoles, and the HD DVD drive add-on, in the States.

This new top model will incorporate a built-in HD DVD drive, which with the HDMI connectivity, will make sense and appeal to film fans too.

Integrating an HD DVD drive into the new console, something that it's thought Microsoft chose not to do when the machine launched for mainly cost reasons, could possibly be a way to try and boost HD DVD's flagging sales figures.

No more info about thew new console was revealed, other than it's slated for release next year. We'll keep you informed...

>> Via - Slashgear