The first live demo of the Xbox 360 HD-DVD player took place at the DVD Forum in Los Angeles this week. The device is an add-on unit and will allow the 360 to play HD-DVD movies.
Microsoft has repeatedly denied that 360 games will be developed for the next-gen DVD format.
Kevin Collins, senior program manager at Microsoft said, "All the audio and video processing is done inside the Xbox. This gives consumers choice and keeps their cost down."
Earlier this year, Lucent alleged that Microsoft infringed upon a video patent owned by them. Lucent claims that their decoder program was used to facilitate the video routines for the Xbox 360 and was used without their permission. The case was originally thrown out because of a technicality regarding Lucent,s failure to properly submit the proper patent documentation for their MPEG2 decoder. In the first filing, Lucent sued to have all Xbox 360 pulled from the market. If Lucent is successful in their second attempt, it could mean huge back licensing fees for Microsoft.
