Damn, sounds great. So now the XBOX 360 will play back my existing dvd library in HD (720 p, 1080p or 1080i) AND will output through an hdmi cable. Can the paystation do that? The bigger HDD is likely included to imporve storage for the vast offerings on xbox live, something sony cannot touch. (Downloaded HD movies anyone?)
The list of reasons the xbox 360 is better than the paystation gets longer and longer. Mo money for the world's greatest company!