Microsoft is set to release an HD-DVD upgrade to its media centre, gaming device, the Xbox 360. The HD-DVD add-on would be an external accessory, and is expected late November in Japan for about ¥20,000, and in the US, about $170.
Microsoft will also be releasing a  Software Update to the Xbox, that will allow full 1080p output, with automatic 1080p upscaling. However, they have not announced if future games will have native support at 1080p
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Microsoft to release HD-DVD, upgrades to 1080p, on Xbox 360