Ed note (clarification on Microsoft's 1080p update
: Microsoft will update the Xbox 360 this fall with software that enables 1080p support for HDTVs. The discussion we had with Peter Moore, who is not a technical specialist, centered around whether the Xbox 360 was capable of a real 1080p output. The Xbox 360 doesn't have an HDMI output, which most, but not all, HDTVs are compatible with. The Xbox 360 has component and VGA outputs, which some HDTVs support. After the interview we spoke with Albert Penello, Microsoft's director of global marketing, and confirmed his view with our own IGN Gear editor, Gerry Block. In short, if you own an Xbox 360 and want true HDTV picture quality, you must own an HDTV that has component and/orVGA inputs, and that has the silicon to decompress the analog signal.
If you own an HDTV that only supports HDMI input, you won't be able to see your Xbox 360 games in full 1080p.
Let you know!