The Microsoft Xbox 360 does not support HDMI and the cheaper version of the Sony PS3 also does not have a HDMI interface. Which means if HDCP is enforced on Blu-ray or HD DVD Discs you would only be able to watch the movie in DVD quality.
The Sony PS3 will be the cheapest Blu-ray disc player on the market for a while and potentially the HD DVD drive for the Xbox 360 will also be rather cheap (price will be possibly announced today). So most HD movie consumers will connect their HDTVs not via HDMI to watch next generation HD movies.
How will the movie industry react to this? Will they just shelf the resolution restriction on non-HDCP outputs? Or are they going to ignore this situation? I still think it is the saver choice to buy the more expensive Sony PS3 which besides HD component outputs also provides an HDMI interface.
More details about Intel's HDCP on Wikipedia. For HDMI details visit the HDMI site.
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