If the people over at Stuff.tv are to be believed (and why wouldn’t they be?), Microsoft is planning on beating themselves in the next-gen console war with the introduction of the Xbox 360 Ultimate.

With a scheduled release of Fall ‘08, the Ultimate will come packed with a 320GB harddrive, full 1080p support through HDMI, hi-def audio, built-in wi-fi, and perhaps most importantly: a delicious 65nm chip and a cooler, quieter fan.

To top off this already ultimate Ultimate, they’re throwing in a fully integrated HD-DVD drive.

There is no mention of a price tag other than “TBA”, but I assume it will be less expensive than a horse, so that’s good.

At this point, we’re going to have to call this a rumor. Stuff.tv provides no source, but links to Xbox.com as a contact for more info. The site, however, has no mention of the Ultimate.

If this is true, I certainly hope this is the last 360 “upgrade”. I can only think of one thing better than “ultimate”, but I doubt Microsoft would accept the Xbox 360 Fellatio. They just may need to invent a new word…