In what can only be described as an inspired move, Microsoft is bringing HD-quality movies to the 360 without requiring that owners purchase the external HD DVD drive.

On November 22nd, Xbox 360 will become the first gaming console in history to provide HD TV shows and movies directly to (US) gamers in their own living rooms. Xbox 360 owners will be able to download full-length TV shows to own, and will be able to rent movies via download from the Xbox Live® network.

via Major Nelson.

It will be interesting to see how Sony responds to this as bit by bit they seem to be losing the upper hand which they once held over high capacity media and 1080p output.