If you're suddenly overcome with a feeling akin to déjà vu, go ahead and kill that speed dial to your physician. For the second time in a month, Microsoft has actually come forward to squash a Blu-ray Xbox 360 rumor. This go 'round, an alleged statement from Redmond states quite outrightly that "Lite-On is not manufacturing Blu-ray drives for Xbox 360," and it continues on by noting that "customers who want a premium movie experience [can check out the] library of on-demand HD content" available to console owners. Still, we've grown accustomed to these denials by now, and while you'd think that having a pair of rumors on the matter smashed would put the issue to rest, we've all ideas this one isn't quite dead and buried just yet.

[Thanks to everyone who sent this in]

One of the criticisms leveled at digital distribution over old fashioned discs is a lack of extras, but Warner Bros. has something for that with its latest release, Nancy Drew: Drew's Clues. Available digitally (VOD, Amazon Unbox, iTunes, Xbox Marketplace) from the same day as the DVD release, viewers can either get the regular movie, or the Drew's Clues edition with "Movies that Pop" pop ups for trivia facts, quizzes and behind the scenes info. This is aimed primarily at the teen-girl sleepover crowd, and while the regular flick is out in HD on all services, Drew's Clues is SD only, plus, to watch it both ways, you would have to rent (and pay for) both versions separately. Key advance that increases the appeal of downloads, or one more reason to take the remote when you leave your tween home alone, we can't decide. [Disclosure: Engadget is part of the Time Warner family]

[Via Variety]

Those hot/cold "Blu-ray coming to Xbox 360" rumors just cooled off a bit again, with product manager Aaron Greenberg telling Reuters "Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience". Clear enough? He also dropped the nugget that Microsoft expects to trail the PS3 in sales again in February, but should have things turned around by April, just in time for the GTA IV launch, which should also be right around the time this rumor rears its head again. In the meantime, digital distribution anyone?

Xbox Live Marketplace has been busy adding videos all year and it looks like March will be the same way, with Afro Samurai hitting the service in HD only next month. More South Park is coming too, starting March 10, along with a free episode of Lewis Black's new show and Robot: Chicken: Star Wars. No word on if the latter two are available in HD, but check after the break for some of the movies showing up for rent next month.

As promised, those MGM flicks have hit Xbox Live Marketplace, satisfying our deep seated need for downloadable HD Rocky and James Bond flicks. Disney's releases popped up on the service last week, however since High School Musical 2 was a TV movie, its available only for purchase, at a cost of 1920 MS points ($23.99), the same as the Blu-ray version on Amazon. Its hard to make the argument the Xbox 360 doesn't need a Blu-ray add-on if HD movies cost the same amount for a lower quality (and more restrictively DRM'd) edition, not that we were really looking forward to downloading all 720p's of Zac Efron or n e thing.

[Via Gamerscore Blog]

While Australian rumors of integrated HD DVD drives and Blu-ray add-ons continue to swirl, Microsoft continues to expand the other way to get HD movies on its console, adding Paramount movies to Xbox Live Video Marketplace in the UK. Coming nearly a year after Paramount jumped onboard the U.S. version, licensing complications continue to delay service rollout in other countries. No word about Canada or other European Xbox 360 owners left with their faces pressed against the glass, waiting for Transformers downloads to their HDTV, but UK gamers can rejoice in 380 Microsoft Point (3.23 GBP) rentals hitting February 19.

Looking for all that ABC and MGM HD content on Xbox Live? You won't have to wait long, with the first three seasons of Lost up now plus the just-aired season 4 premiere (Hurley was all ZOMG!, and Benry was like Bu-bu-but...) available for purchase at 12:01 a.m. PST for 240 MS points ($3 U.S.) per episode -- just barely missing the original "later this month" promise. Due later on in February are hits like the High School Musical series and other content from the Disney Channel, and MGM's releases hit on the 18th. Mr. Brooks, the Rocky series, The Usual Suspects, Saw IV, and Michael Clayton are all coming soon in HD (if you want to call it that). Looks like someone's gearing up to take on the Apple TV, how about a price cut, or loosening up on the DRM?

HD is coming in a lot of forms these days, but ZDNet's George Ou thinks some of them -- like Apple TV, Xbox Live Marketplace, ABC.com streaming and cable VOD -- don't count. Sure all of these sources are HD resolution, but George's argument is that due to overcompression and low bitrates, they don't compare with 1080p upconverted SD DVDs, much less Blu-ray or HD DVD. Low bitrates might mean less detail than we're used to and some issues with fast moving action, but we've checked out all of the above, and if you've got the pixels, then you're HD. Whether or not thats enough to satisfy is up to the viewer, but we're sure there's a faction out there arguing if you have to get off your couch to buy it, it's not really a high def experience either.

While HD DVD and Blu-ray have both lost key supporters recently, Microsoft's Xbox Live Marketplace seems to just keep adding new content providers, this time bringing MGM and Disney-ABC Television Group to the fold. Conspicuous in that both are exclusive Blu-ray supporters, Xbox 360 owners will -- later this month -- have access to ABC hits like Lost, Grey's Anatomy and Desperate Housewives in HD the day after they air. So far, MGM's announced just classic and catalog flicks like the Rocky series and The Usual Suspects, with "most" available in HD. Still looking for a Blu-ray add-on or built in HD DVD?

Microsoft's Xbox Live Marketplace keeps adding content, this time partnering with ESPN to offer commercial-free versions of NCAA football games and TV shows in HD. The games will be available within 48 hours of their conclusion for $4.50, and TV shows are $3 each. Digital distribution is continuing to pick up steam, but we're not sure how many people will pay that price for a replay of one NCAA game.

We'll admit it, we had an idea Microsoft's just-announced Xbox 360 Arcade was coming. What we didn't expect was that it would be accompanied by a flood of family-friendly content headed to the Xbox Live Video Marketplace. Along with standard-def content from Nickelodeon, Warner Bros. will make 50 high definition episodes of Looney Tunes available for download. Of course, owners of the new Arcade unit won't be able to download the shows without a HDD, but why sweat the details (like pricing, which wasn't mentioned)? The new content hits "starting today", but doesn't appear to be up just yet, so keep an eye out for Acme-brand items landing on your HDTV.

The already nicely priced Xbox 360 HD DVD player just got slashed to $179. The new US-only, retail pricing also includes 5 free HD DVD flicks when purchasing the player between August 1st and September 30th -- you know, the same time period 300 and Heroes goes on sale in HD DVD format. Unfortunately, the free titles must be made from a selection of just 15 pre-selected films which Toshiba considers "popular." Nevertheless, the $20 price cut makes the Xbox 360 HD DVD player all the more enticing as an easily hacked, USB-player for HD flicks on your PC.

Update: Xbox 360 owners will be getting downloadable treats to promote the add-on, Microsoft announced that the movie 300 will be available on Xbox Live Video Marketplace in HD starting August 14th. In a repeat of the South Park promotion earlier this year, the first episode of Heroes will be made available for free prior to the release of the boxed set on HD DVD for a limited time.

[Thanks, Andrew and PacoDG]

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.

Microsoft scored another debut of animated content moving to HD for the Xbox Live Marketplace, as it recently announced the anime classic Akira will headline the rollout of anime from distributors FUNimation and Geneon. Despite initial growing pains with slow downloads and that too-small hard drive that's so expensive to upgrade, Lions Gate recently revealed that its movies have been rented 150,000 times on the service and called it a "promising sign" for their library and digital delivery. Along with the anime, expect content from Logo and CMT to also hit the service starting Monday, although no word on what, if any, of that will be in HD.

Read - More Content Coming on Xbox LIVE Video Marketplace US [Via Joystiq]
Read - Xbox Live boosts Lions Gate revenues

Microsoft officially announced the new "Elite" edition of its Xbox 360 console tonight, and also provided info on some new content coming to fill up those 120GB hard drives. Paramount Pictures will have its movies available for download in HD for the first time, and Warner Bros. has committed to releasing its direct-to-video movies exclusively in high definition on Xbox Live. The first two titles will be Sublime and Babylon 5: The Lost Tales. Just to show that they can keep up with the Jones' (and the Sony's) in numbers, Microsoft announced that the South Park HD episode was downloaded over 380,000 times, while HD clips from 300 were downloaded more than 477,000 times. New content partners hitting the marketplace are A&E, ADV Films, National Geographic, New Line Cinema. We're still not sure about the $179 price tag of the new larger hard drive, but there should be plenty to fill it with in the days to come, even a lot of movies that have yet to see HD DVD and Blu-ray releases like Snakes on a Plane and Braveheart. However we must say that the distinct lack of HD Battlestar Galactica episodes continues to grate the nerves. Check out Joystiq for more info on the content and pricing (480 MS points/$6 for new HD movies, 360 MS points/$4.50 for "classic" films, 240 MS points/$3 for TV shows).