Bill Gates announced in Japan this week that M$ would eventually utilize Toshiba's HD-DVD format in future xbox 360's. The logistics of this development were not specified, however the general consensus seems to be that the "new" drives will only allow for HD movie playback and not 25 gigabyte games. That is, all future 360 games will use the current DVD-9 format. As is widely known, Sony will use their proprietary Blu-Ray disc technology in the PS3. While Blu-Ray boasts higher capacity than HD-DVD it also requires new stamping equipment, while the latter can be produced on existing DVD production equipment. As such, film studios are evenly split on which format they will support in the future. Can anyone say VHS vs BetaMax? Depending on how M$ plays this out, it could mean disaster for the xbox 360 from day one. We cannot be expected to re-buy the 360 only a year after launch. Also, I'm not sure why the ability to playback high-def content is mutually exclusive from HD-DVD based games. Perhaps if there is some sort of trade-in program, where a DVD-9 Xbox 360 can be traded in for a HD-DVD 360 then this will be a non-issue. Just go to EB and swap your harddrive to a new unit, and let M$ refurb your old 360 with the new drive.