oh...ok....i must\'ve been confused.....i always thought that they were usin\' hd-dvd\'s for their gaming format,.....so are they still using regular dvd\'s for their games?
Yep. Because they needed the console in time and at an affordable price in 2005 they made the console use DVDs. High Def formats were delayed and expensive.
MS decided to market a HD-DVD add on for the 360 to counter attack PS3\'s marketing that it was the ultimate High Def device and the only console that gave you the chance to enjoy HD movies. Games on the HD-DVD were out of the question as they would fragment the users and the amount of sales a title would get.
MS might consider a Blu Ray add on or a Blu Ray 360 for "qualitative" gains though in the future. I dont see any other gain. Although that would mean extra costs for MS at the same time it is a good strategy in terms of countering Sony\'s efforts to market the PS3 as the only console that has the next gen format.
The Elite itself was partially such an effort offering bigger storage (120GB) than the PS3 and an HDMI (areas that the premium 360 lacked next to the PS3), at the same price as a 40GB PS3. Well someone who was considering to get a PS3 might as well reconsider his purchase with such an option available and buy an Elite.