While agree that they should have perhaps thought it through a bit more, remember that the 360 came out a full year before the PS3. I don't think at that time, it was feasible to include an HDDVD drive in the 360, it would have been cost prohibitive.
That said there is nothing stopping them now from revising the 360 again, to include an HDDVD drive built-in to the 360. But I still don't think it is necessary as the 360 was designed first and foremost as a game system. There are no 360 games on HDDVD and I don't think it is necessary, at this time.
Don't get me wrong, I wouldn't trade my PS3 for anything, actually the opposite, I did sell my elite to buy a PS3, before the elite price drop and after the PS3 60GB Price Drop. So I got it at the right time. Now that the 360 Pro systems are cheaper and include two games, I may pick one up again, as the 360 really is a fun system too.
The 360 was rushed out 1 year early to beat sony to market, it wasn't done (see RROD) and that is why HD-DVD was an add-on, because yes you are right it was too expensive at the time, but MS will NEVER make games on HD-DVD because they wont want to shut out the early adopters. so you will see more games on 3 or 4 DVD's as time goes on, but that goes back to what I said about MS being a software company. Playing HD movies is just an added benefit, not having to switch discs in a game is the real reward.



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