Originally Posted by 1UP
UPDATE: Looks like we can put the issue to rest. Microsoft has, once again, officially denied they will be releasing games on the upcoming HD-DVD format, confirming the add-on will be movie-exclusive. The statement released from the company this afternoon makes that pretty clear, and they don't appear to be leaving room to budge:
We're seeing lots of speculation about our upcoming HD DVD Player, and whether we have plans to publish HD DVD games. The answer is no.
Since announcing the Xbox 360 HD DVD Player accessory at E3 2006, we've been clear that it is designed exclusively for playing HD DVD movies. It will not play games on HD DVD.
At this point, we haven't seen anything to suggest that next-gen DVD formats offer a better game experience than current DVD. What we do know is that these formats will bring added cost to game developers, disc manufacturing, and could even result in added costs and longer load times for the consumer, which would negatively impact the game experience. We are focused on making great HD games available to consumers now, and games like "The Elder Scrolls IV: Oblivion" clearly show that beautiful high def graphics and huge, immersive worlds to explore are possible on the DVD9 format. -- Microsoft spokesperson
[/MOD POWER ABUSE]
Yeah, I blinked too...
This is from a subscription only publication so sadly I cannot provide a link to the source. If a mod wants, I can PM them sufficient evidence to demonstrate the authenticity of the information, but you're just going to have to take my word for it at the moment.
Microsoft hasn’t determined whether to do Xbox 360 games in blue-laser HD DVD, but has ruled it out for “this holiday” when it ships its HD DVD drive for movie playback through the Xbox 360, said Dave Luehmann, gen. mgr.- Microsoft Game Studios. “Speed of loading” is Microsoft’s big concern about HD DVD games on the Xbox 360, Luehmann said. Xbox 360 games on red-laser DVD9 can run at 12X speeds at data transfer rates that aren’t a problem, but the same can’t necessarily be said of HD DVD game content, and Microsoft wants to be confident of pleasing users, he said. He wasn’t more specific about delivery timing of the HD DVD drive. Microsoft hasn’t released pricing on the drive, but “will do so shortly,” he said. He vowed it would be offered at a “great and affordable” price, repeating statements of other Microsoft executives that the drive would be the “cheapest” HD DVD player available.