Hargreave's comment seems to insinuate that the new HDMI output options will "be completely transparent to developers" which should leave all the video duties up to the advanced scaling hardware inside the revised 360.
His comment could also mean that games that dont natively support the 1080p resolution will be upscaled to do so. Movie fans should be happy as well because the current 360 line can only send a 1080i signal using component cables.
For the current line of 360s, you have to use a VGA cable to hit 1080p but that should not be the case soon when the Elite hits store shelves.
Source:
DailyTech
Written by: Andre Yoskowitz @ 27 Mar 2007 10:20