HD-DVD will be coming to Xbox 360
No surprise here, from Kotaku:
HD-DVD is indeed coming to the 360. It's cybernetic umbilical cord to the 360 placenta? USB.
From XBox.com's official E3 site:
"Xbox 360 ushered in the era of high-definition gaming by standardizing high-definition resolutions and 16x9 widescreen support for every game (Xbox Live Arcade included) on the system. What's more, Xbox 360, while powerful on its own, is also a foundation from which new technology and accessories can be added. Chief among these is the recently announced HD DVD add-on.
This much anticipated accessory carries with it an extension of the HD Era that Xbox 360 offers, and provides the most visually stunning movie watching experience available.
This new accessory will connect to the Xbox 360 console with a USB cable, enabling it to harness the power of the Xbox 360 console for the HD video outputs and digital surround sound. As an accessory, it becomes another shining example of the flexibility of Xbox 360 designed into the console in order to grow and add new features. It's also just one of several new accessories being announced at E3."
HD-DVD Coming To 360 [XBox.com]