HD-DVD players are fully backwards compatible to the current DVD format. Heck, they even share the same manufacturing plants.
Yes, DVD prices held, because of lack of competition. Since HD-DVD is outclassed through technology, they are going to instill a price war, that quite frankly, I don't think Sony can afford to support. Which is why I believe Sony is forcing all developers to use Blu Ray discs for PS3 games, whether they need the space or not, this will drive manufacturing costs down a little quicker due to a higher volume being created. They're preparing themselves for a huge price war.
No, the official Xbox 360 specs never had a HD-DVD player. The plan was to always use DVD-9.
I'm done for the night, take care.
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