Microsoft’s Entertainment Division seems to be gearing up for a groundbreaking CES showing. While a strong showing is a guarantee, many are left with only speculations. Gadget magazine Stuff, believes it has the scoop on what Microsoft will be debuting. Stuff believes that Microsoft will be unveiling the Xbox 360 Ultimate. While many look at the current market as somewhat flooded, with currently three SKUs available, over here at Stick Skills, we would love to see these specs in a 360.

The rumored Xbox 360 Ultimate is believed to hide 1080p HDMI output, built-in Wi-Fi, hi-def audio output, cooler 65nm hardware architecture, a near silent fan, a 320gb hard drive, and HD-DVD drive in its case.
These specs seem somewhat outlandish, however, with last years debut of IPTV and the earlier rumors of a DVR 360 we will not doubt the possibility. Even more likely, this rumored Xbox 360 Ultimate, may be a non-Microsoft branded machine. With Toshiba pushing HD-DVD strongly, it only makes sense for them to be the first to license the Xbox 360 from Microsoft and add a HD-DVD drive to it.
Whether these rumors are found to be true, expect huge news on the Xbox 360 front come next week at the Consumer Electronic Show.