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The Xbox 360 thing on MTV was a total embarrassment. I hope Nintendo watched it closely and learned what NOT to do.
To say it was a total embarrassment is a gross understatement. Those thiry minutes of basically nothingness made me remember why I hated MTV so much in the first place. The most annoying part was when that self-styled gamer was drilling the Perfect Dark team over polygons per character, framerate, etc...it was so wrong. And then showing the actual machine for about two seconds. (Which, I believe, is friggin ugly - also, it looks like it could only be oriented vertically.) They didn't even show the controller, only people using it, and then from odd angles.
As for the new revelations- I was pretty happy when I saw them in the NYT this morning...but I hope that HD format support isn't dead. It'll be just like last gen, in terms of Nintendo being the odd-one out. It's possible that it hasn't been announced because of the ongoing HD format unification talks that are happening. (Supposedly an official announcement is coming on Monday.)
Still, the fact that it has by and large countered the new Xbox specs is a good sign. Using double-layered DVDs is still bettter than sticking with the tiny 3-inch discs. It could have an effect on the price. In that same NYT article, it said that next-gen games are expected to cost $60 to $65 each- possibly because of the higher costs incurred by using an HD format disc.
Now, whether developers and the gaming public will be interested remains to be seen, but at least Nintendo hasn't given up...