I purchased 2 XBox 360's for Media Center features and not gaming. I am problably the exception but I think with Vista, Microsoft is really pushing for the all home entertainment and Xbox's are a big part of it.
A reprieve for the 360. Exactly as I said, if ICT was turned on the HD DVD part of the 360 would be doomed. This is good news for consumers though. Maybe by 2010 they will forget about the ICT bologna.
Hollywood appears to be in agreement to delay ICT restriction
Posted by Seán Byrne on 23 May 2006 - 00:32 - Source: Ars Technica
With HD DVD already on the market and Blu-ray preparing to enter, in order to help consumers make the transition, many content providers have decided not to use the Image Constraint Token (ICT) in their discs. If present, consumers who do not have a HDCP complaint TV will face watching a much downgraded image resolution. Well, according to a German news source, there appears to be an unofficial agreement between Hollywood and various content providers, including Microsoft and Sony to not enact the ICT until at least 2010 to possibly even 2012. However, as the report is unofficial, Hollywood could still potentially change its mind to bring in the ICT sooner. Even though the vast majority of new HDTV sets in the stores feature HDCP compliant HDMI inputs, another problem arose with Sony's budget PlayStation 3 announcement in that it lacks HDMI. A similar story can be said with Microsoft's upcoming HD DVD player add-on for the Xbox 360. This basically means that the consumer could have a fully HDCP compliant TV, but without a HDMI output on their game console, they will still face watching a downgraded image should content providers start enacting ICT on new titles. Assuming this agreement does exist between the Hollywood, Microsoft and Sony, this may explain the reasoning behind both lacking HDMI on their game consoles, at least the budget PS3 and the present Xbox 360.
This "HDMI" connector standard is part of a "protected pathway" for video that was meant to combat piracy by making it impossible for pirates to tap into high-definition video output and press "Record," as it were. Many fear, however, that the only success HDMI will have is in making honest users miserable, inasmuch as consumers could be left with a product that plays at low quality or not at all if HDMI is not present on one's player or TV. The conundrum isn't apparently lost on the consumer electronics industry or Hollywood. According to German-language Spiegel Online, there is reportedly a behind-the-scenes, unofficial agreement between Hollywood and some consumer electronics manufacturers, including Microsoft and Sony, not to use ICT until 2010, or possibly even 2012. Without providing more details, the report suggests that Hollywood isn't exactly happy with the situation, and could very well renege on the agreement, such that it is. But the agreement is there nonetheless, presumably to help the industry transition to HDMI. This could explain why the very same studios that pushed for HDMI and ICT have recently announced that they would not use it for the time being. The full Ars Technica article can be read here.
From what I can see, there would be little point in Sony releasing a budget Blu-ray based console and Microsoft releasing a HD DVD drive console add-on, both lacking HDMI if they were unsure how soon ICT would potentially be enacted. However, as 2010 is a good while ahead, this gives plenty of time for the pricing of Blu-ray and HD DVD players to fall substantially such that by the time ICT does become enacted, consumers would have no problem affording a new player, much like how basic DVD players can easily be found on sale for under $30.