Microsoft released more details about the HD-DVD add-on for the Xbox 360 this weekend, and it was confirmed that the new HD-DVD drive will connect to the Xbox 360 via the USB port, and will use the existing outputs for the Xbox 360 to display content. Microsoft pushes HD-DVD for a few reasons, primarily cost. However, cost eventually will be a wash, and while Microsoft says that initial Blu-ray players have been priced at $1000, they convieniently ignore the fact that the PS3 will cost nowhere near that amount. No pricing details for Microsoft’s add-on have been announced, and MS makes no mention of how they are working around the HDCP resolution limitations, given that no current video output option has any form of HDCP support. While no current discs implement the restriction, this can not always be guaranteed to be the case.

Read More | Xbox.com