The same sorta thing happened over at home theater forum. A lady who works for Microsoft informed us that the Xbox would not output 480p progressive playback for DVD movies, but only for games. She told us this in late September, way before any videogaming site article or press release was made. People were skeptical at first, but as the weeks passed people saw the DVD kit box had the words (NTSC video for DVD playback), then the official site said the same thing for its accessories. Finally Microsoft made the official announcement a week and a half before launch.
She says it was due to Macrovision issues, and m$ was more than happy to include 480p output for DVDs but would run into some problems with MV corp. if they did. They decided to take the easy route and do 480i instead. She wouldn\'t elaborate on the details as they were corporate matters. Microsoft wanted to change this spec as quietly as possible.
For some reason I tend to put more stock in the rumors on the HT boards since they have many members involved in the industry. Thanks for the news Cored. Whether it\'s true or not, it\'s nice of the guy to release this info (if he actually does work for Square that is).