AH HA!! I bet Gates and company will bring out a XBOX360 HD-DVD version with maybe HDMI 1.3 on it. The price will be close to the PS3 with HDMI 1.3 and Microsoft will collect some more money from folks who love the XBOX360 and want to move up. Of course this is very shrewd but then this is how Microsoft plays the game.
Of course my statements are pure speculation but lets see what MS is up to. With DirectX they have already stated that version 10 will not be made for XP users. You must upgrade to Vista to take advantage of newer higher powered graphics cards. As I said before, this is how MS plays the game. Hey, I might even consider a XBOX360 with a built in HD-DVD player and HDMI 1.3!!