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What about the millions of current 360 owners? If they were to offer the HD-DVD add on for say... $49.99 I bet it would sell millions. Then Toshiba can go to studios and say "we are in x amount of homes."
To be honest i first originally thought HD would come out on top, but atleast its the superior media this time thats comming out ontop, unlike what happened with VHS and Betamax.