Major Nelson has just uploaded Microsoft Chief Architect Bill Gates’ keynote, which as expected contains some statements on HD-DVD and Xbox 360. An mp3 mirror of the keynote can be found here.

Gates is quoted as saying:

Building on Xbox 360 leadership in high-definition experiences, the company announced plans to deliver a new Xbox 360 external HD DVD drive in 2006. The new drive will offer millions of Xbox 360 owners the ability to easily enjoy HD DVD movies and will provide consumers with even more choices for experiencing high-definition content, in either physical or digital form.

While many expected Microsoft would actually modify the Xbox 360 design itself this would make no sense considering the console is only 2 months on the market and it would alienate existing owners. Releasing the expensive drive as an optional add-on seems to make sense in that respect. It also fits Microsoft’s original claims that an HD-DVD on Xbox 360 will only ever be used for movie playback and games will stay on the smaller current DVD platform.

This can also be considered the official start of the next-gen DVD wars. Up to now only Sony had committed firmly to Bluray for its upcoming PS3 console, but with Microsoft putting its weight behind HD-DVD for its own console the race is now open for which format will actually get the edge. Film studios will likely become the deciding factor now.

To listen to the full keynote in mp3 click here.