Microsoft's E3 conference is still ongoing, but they were more than happy to note that Xbox Live Video Marketplace has already raked in more than $125 million in revenue, and is bigger than any cable providers' VOD offerings. As if that wasn't enough, for everyone who thought Blu-ray would be their only option for Disney films in HD, Microsoft announced that it is bringing both catalog and new releases to Xbox Live, in high definition, starting tonight. Our friends outside the U.S. have something to look forward to as well, because it plans to bring the video marketplace to Canada & Europe by the end of this year. Check out the live blog for more details.

Update 1: Check out the official details after the break.

Update 2: More info from Reuters indicates 35 titles from Disney are available now, including Bridge to Terabithia, The Queen and Deja Vu, but no Pirates of the Caribbean: At World's End (currently available on iTunes in theaters) on the way yet.

As if you didn't have enough high definition E3 videos clogging up your hard drive, here's one more. Bungie is showing off the making of the Halo 3 trailer that closed Microsoft's pre-E3 conference. Beyond viewing the the developers of the game in high-def, you can also get a look at the music of the trailer and various pre-production shots, unused angles from the real-time cinematic and some hints about where they are going with what what is apparently the end of the Halo trilogy. According to Bungie you will also be able to download the high def version of this video to your Xbox 360 via the marketplace in a week or two. We like HD, we don't like waiting, head over and get the video in 720p in WMV or QuickTime format right now.

That's the rumor that has been floating around the interent since E3. This German site (translated via Google) claims to have knowledge of a "backroom agreement" between hardware manufacturers and studios that would allow for full-resolution output through analog connectors until at least 2010. The theory is supported by the Xbox 360's HDMI-lacking HD DVD add-on, and the budget PS3's similar lack of a protected output. Still, rumors and back room agreements won't do much to ease the concern of HDTV owners with only analog inputs, and people considering buying a next-gen console to double as a high definition DVD player.

The longer the issue remains in limbo, the longer prospective buyers will be content to ride the fence, so lets hope they make a public decision and soon.

[Thanks for the tip via AVS Forums David!]

This is a question that we are visiting a bit these days, well with E3 and all. High definition is great for video and television but is it a necessity for games? IGN has laid out 4 pages outlining their take on the matter. They follow the same line of thought that we have had for sometime and is a great read. Even Nintendo's CEO thinks high-def is good and all, but there are more important things then pretty graphics. (yes, we know the Wii doesn't do high-def so he would say something like that.) If you are even a causal gamer you might want to check this out.

As the next-gen parade continues at E3, many people have stopped by to comment on their opinion of Sony's upcoming console after it was revealed that at least two of the upcoming titles would definitely be running at 720p, not the 1080p Sony has been touting as the true definition of HD. Just to clarify, no one has suggested that PS3 would not be able to output games at 1080p (well, no one suggested it until Sony revealed the $499 model would be without HDMI anyway).

After all that, IGN took a look around and has only found two games on display targeting 1080p. The upscaled-GT4 demo Gran Turismo HD, and Wardevil, showing a real-time tech demo but non-playable. It is likely that if you have a TV that can accept a 1080p input the PS3 will be able to upscale games rendered at 720p or 1080i to match, just like the Xbox 360 does. How soon until the first major native 1920x1080 game hits? That still remains to be seen.

There has been a huge outcry from the gaming community about the lack of HDMI on the $499 PS3. Sony has responded by saying that the reason for the lack of HDMI support is that many HDTVs do not have HDMI on it and there is not a big difference in the picture quality.

Fair enough. Many older HDTVs do not have HDMI but all the current and future ones do and will support HDMI. And no, there isn't a huge difference in the picture quality between component and HDMI, but lets think of the future here. The PS3 is a huge part of the Blu-ray strategy but without HDMI you aren't going to get 1080p and the ICT thing is huge. If, and we are saying if, the movie studios start using the Image Constraint Token, then you less expensive PS3 will not be able to watch your expensive Blu-ray movies at any resolution past 480p.

Sony has been claiming the the PS3 is future proof and we just do not agree with it concerning this model. People do not care about the lack of built-in card readers or WIFI but HDMI is a major concern. When Microsoft launched two different priced XBOX 360s, they were just simply difference versions not different models. You could always add to you cheaper 360 what you choose not to buy initially, where with the PS3, you cannot simply buy an HDMI port.

Well, we finally have some details about the Xbox 360 HD DVD player. Joystiq/Engadget has great coverage of the Microsoft press conference and snapped a pic of the PowerPoint slide. First, it looks like it is just an external optical drive that connects via USB. Second, it will be out this year just in time for the holidays. The big thing though that everyone wants to know is still missing; the price. We are hoping that it is around the $150 - $200 range but no one knows for sure yet. We will let you know as soon as the price becomes available.

Ok so thats basically direct marketing speak from Microsoft. But it's true. This week Xbox 360 owners have been able to download trailers and demos of some of the same games that they will be showing in LA. Yesterday I was able to download the demo for Test Drive Unlimited (which is not so unlimited, the demo has a 15 minute timer boooo!) and Lost Planet, as well as the trailers for a lot of other games, movies and apparently there will also be video straight from the E3 floor. If you don't have a 360, you can also get a hold of the high definition trailers from Xboxyde. To find out exactly what and when things are available, check out the Marketplace section of MajorNelson's website.

We'll get back to you after Microsoft's pre-E3 showcase, in the meantime, check out live coverage at Joystiq.

Today's XBLM releases:

Game Trailers:
Call Of Duty
Culdcept SAGA
Hitman: Blood Money
Lost Planet Extreme Condition
Marvel: Ultimate Alliance
NBA 2K7
Rockstar Games Presents Table Tennis
Tony Hawk's Project 8

Demo:
Lost Planet


As just announced during Microsoft's presentation THE HALO 3 TRAILER IS AVAILABLE FOR DOWNLOAD ON XBOX LIVE. That is all. Also available on bungie.net.

O.K. we love high definition. Really, we do but how important is HD in games? Seriously, is high-def more important the content of the games. Some of the best games of all time relied on the story instead of graphics. Zelda, Mario, Civilization and the list goes on. Would a higher resolution improve the games...no; it would enhance the experience abet but would not add anything to the overall game. We are not questioning the fact that HD is great in games but would you trade a great overall gaming experience from the Nintendo Wii for a good game in high-def from the PS3? What if it cost more then twice as much?

Just something to think about going into Nintendo's E3 press conference.

Check this out: high definition content right from E3! A few gaming sites have this type of content out but it is part of their premium services. It would have been sweet to see these live but that's what we have HD for, right? These are all torrents so you will need a torrent manager like uTorrent in order to download them. Judging by the size of 'em they don't seem like they would be to long but any high-def is better then no high-def.

Let us know what you think. Are these PS3 game clips dramatically better then the 360s?

[via Digg]

Lets get down to the facts.

• $499 w/20GB HDD, $599 w/ 60GB HDD in the United States
• No new details about Blu-ray movie playback or drive speed
• Japan launch date: November 11
• US Launch date: November 17
• 2 million PS3s to ship in "launch window"
• Accelerometer in a wireless dual shock controller, much like Nintendo's, no rumble support
  
• Showed Gran Turismo HD: a special version using GT4 models rendered at 1080p and 60fps

Well there it is folks, don't forget to check out Joystiq for the moment to moment updates, although they are likely to slow down momentarily as Sony's last announcement was that they had playable PS3 games onsite. Now I suppose the question is why would anyone buy an HD DVD player for $500 when they can get a PS3 for the same price. Did anybody else check out the stream (via Gamespot.com or E3insider.com), what were your impressions?

Apparently we're not the only ones feeling befuddled at the PS3's relative absence from CES. after Sony had previously indicated a possible spring launch, analysts now believe that the Blu-ray/dual 1080p powerhouse from Japan will launch as late as November in the US. Couple that with rumors of hardware problems, the possibility that what we have seen so far is only a concept design, and you've got some very anxious gamers.

Delays or no delays, we are definitely looking forward to the PS3 launch, it will probably be the cheapest source of 1080p content for anyone with a TV that supports it, probably the cheapest Blu-ray player available and almost certainly a monster of a games machine.

Heres to hoping Sony brings something better to show and tell at E3.

It's official. I'm boycotting all things not high def. E3 was the start, and last weekend's Tokyo Game Show sealed it. The high definition gaming era is upon us, and I'm not squinting at low resolution photos and postage-stamp sized movie trailers anymore. I'm going to play it in high definition, why would I try to judge a preview of it in anything less? Microsoft and Sony have taken the right steps in person, displaying their wares on glistening high definition displays at each tradeshow, but finding proper quality trailers and screens is still much like panning for gold, a few shiny nuggets every now and then, but mostly just mud.

Bus passes for the revolution after the jump, along with links to the best sources for HD resolution trailers and pictures I've found.