Toshiba may have conceded in the HD war, that doesn't mean Microsoft will throw in the towel, even if its only with a new firmware update for the Xbox 360 HD DVD player. Log into Xbox Live and put in a HD DVD disc, you will automatically be prompted to update (adds support for network features and improves compatibility).

Microsoft released the X360 HD DVD Emulator, enabling film studios and disc authoring companies to test the behavior of HD DVD disc content, including encoded video and HDi interactivity, in a virtual environment before committing to burning a single HD DVD disc.

Shortly after announcing the Xbox 360 game bundle for this holiday season, Microsoft unveiled yet another promotional campaign, this time to push the HD DVD format. Between Oct. 1, 2007, and Feb. 28, 2008, you get to add five free movies from the HD DVD catalog if you buy an Xbox 360 HD DVD player. On the other hand, if you buy an X360 at Wal-Mart, you get the HD DVD edition of "300" for free (which you can still watch on your regular X360).

Arriving at retailers in North America, the U.K, France and Germany in mid-November 2006, the Xbox 360 HD DVD Player will retail for an estimated $199.99 in North America and 199/£129.99 in the U.K., France and Germany. The Xbox 360 HD DVD Player comes with the Universal Pictures’ blockbuster film Peter Jackson’s King Kong on HD DVD (for a limited time) and the Xbox 360 Universal Media Remote.

ATI Technologies announced today that Microsoft has chosen ATI's H.264 decoder for the Xbox 360 HD DVD player, bringing users sharper, more true-to-life visuals and smoother playback of high-definition content, up to six times the resolution of traditional DVDs all on a single disc.