There is some disagreement over exactly what Microsoft is planning to announce tomorrow, but all agree that an upgrade to 1080p is a given. What is unclear whether all content will be upgraded, or just content that is streamed from Xbox Live or a Media Center PC.
Along with HD DVD, they are keeping up with the newest display technology as well as the PS3. With no price cuts expected, the Xbox360 Premium bundle with HD DVD and the PS3 with Blu Ray will be about the same cost. Of course, the with the Xbox, the HD DVD is optional.
Other enhancements they should be announcing:
- WMV video streaming
- Supports data CDs and DVDs, USB 2.0 flash drives and Xbox360 Memory Units.
- Xbox Live Arcade enhancements
A lot more is included in this update, it’s nice they finally got an update out there. This is the first major upgrade since it launched.

