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Microsoft's VP of Interactive Entertainment Business in Europe, Chris Lewis, tells GI.biz that the removal of the HDMI cable from the Elite packaging was to enable more "flexibility to consumers who can then decide which type of cable they want for their specific gaming and TV screen set-up." Pardon us, but that's like saying Sub-Zero ripping out your spine gives your body more "flexibility." Of course, the drawback is that you're dead.

Adding insult to injury, the new Elite bundle isn't just shipping sans HDMI cable, it has no HD cables at all; meaning that consumers now have even more flexibility to purchase better cables. While any old HDMI cable will do (they're cheap too!), the Xbox 360 component cable is proprietary and priced at $40 (as is the VGA cable). Want optical audio with your HDMI? That adapter's proprietary, too -- and $50. In fairness, PS3s don't ship with HD cables either (they do have an optical audio port, though), and that's always been a joke -- a joke that Microsoft is now in on.

Avatar, the upcoming Ubisoft title based on the film James Cameron could not stop talking about during E3 2009 will require an HDMI port for 3D effects, leaving early Xbox 360 owners out in the cold. Luc Duchaine, senior international brand manager for the game adaptation of James Cameron's Avatar confirmed to MTV Multiplayer that a full 1080p setup will be required to play the game with 3D effects.

Although all Xbox 360 consoles are now capable of upscaling content to resolutions as high as 1080p, the Avatar game requires a native 1080p output which is only achievable through HDMI (something that is common knowledge for 3D geeks, we're told). Users with an HDMI equipped console now only need a pair of 3D glasses included with the game and a compatible 3D 1080p, 120Hz TV set! If 3D isn't an option, the game is still playable the old-fashioned way; however, the 40-minute introduction video starring James Cameron explaining the entire Avatar universe that we expect to see when the game inserted into our console will be slightly less awesome.

Those not experiencing audio from their Xbox 360 HDMI connections may soon find their complaints silenced.

Major Nelson just informed us that a mandatory 360 dashboard update will be released this Tuesday morning at 2:00AM pacific, and will fix the HDMI audio problems some have been experiencing. As always, dashboard updates will only begin rolling out at 2:00AM pacific, so it may take a while before actually being prompted to download.

When the switch was flipped to release the New Xbox Experience (NXE) everyone at X3F HQ was huddled around a candle, hoping that Xbox Live wouldn't ... you know, explode! Thankfully, the NXE was released and the Live service continued to run strong, for the most part. However, not everyone had a rosy experience. Some Xbox users connected throughout HDMI noticed an issue, the NXE would not play audio via an HDMI connection. While this isn't news, users that have been hit with the audio issue have taken to the Xbox.com forum, now threatening to take the issue to the the Better Business Bureau and contact consumer advocacy groups due to Microsoft's refusal to address the problems.

Only, Microsoft did address the NXE/HDMI problem. On December 2, X3F reported that Microsoft admitted the NXE had caused the HDMI audio issue for some users and are currently working on a fix in a story on ShackNews. While they don't get points for speed -- actually, maybe they do ... we don't know how long it takes to fix these things -- Microsoft has admitted the problem and aren't leaving anyone out in the cold. Get it? 'Cuz it's December. Never mind, you seem upset.

[Ed. Note: Story edited to clarify the audio issue has only hit some HDMI users]

"We are aware that a handful of Xbox LIVE users are experiencing audio issues" a Microsoft rep informed Shacknews, promising that they're "diligently monitoring this issue and working towards a solution." According to numerous internet reports, after the NXE update was released a few weeks back, some Xbox 360 HDMI users lost all game audio.

Gaming without sound is no fun. Hopefully we can haz the NXE caused HDMI audio problems fixed soon.

There's quite a thread going at the AVForums in which several 360 owners are saying that the New Xbox Experience has caused their Xbox 360 consoles to lose all sound. The problem seems to be isolated to those who use HDMI to connect the console to their television sets, although one user has complained of the same problem using a SCART connection. For the moment, a quick fix has been discovered that seems to work for many people. If you are experiencing this glitch try the following:

• While the Xbox 360 is turned off, remove the hard drive.
• Turn on the Xbox 360.
• Once the Dashboard loads, replace the hard drive.

Reportedly, this fix only lasts while the Xbox is on. Once you turn it off, you'll have to repeat the steps above to make the sound work again. We've contacted Microsoft and the company is aware of the issue. We'll update this post when we receive more information.

[Thanks, Daniel H]

For those of us with HD displays, the revelation that the Netflix component of Xbox 360's New Xbox Experience would stream HD video via the intertubes was just spiffy. Then came various reports that said feature would only be available in situations where the 360 was connected to an HDCP-compliant display via HDMI. Even then, the scuttlebutt was that older 360s might not be up to snuff. Not true, as our pals at Engadget have found.

They've tested a 360 connected via component cables and confirmed that it displays the Netflix HD content just fine, as you can see in the above photo. It should be noted that those with older HD sets, which only have DVI inputs, may encounter problems using HDMI-to-DVI converters, since the 360 can't make the necessary HDCP "handshake" in that configuration. As Engadget points out, it's still possible to use the 360's optional VGA output in this case. For most HD display owners, though, insert a big sigh of relief here.

As many of you know, Gametrailers recently came under quite a bit of scrutiny when it was learned that the PS3 and Xbox 360 comparison videos they've been posting were used at the PS3's default video settings and using component cables. To silence its critics, Gametrailers posted a video comparing Uncharted: Drake's Fortune using standard component cables like they have in the past and what many PS3 owners have wanted – HDMI, full RGB and with adjusted ultra white levels.

After watching the video several times, we have to say, it's kinda hard to tell a difference. In the end, this whole controversy might have been a bit overblown, but we think it'd probably be smart on Gametrailer's part to just use the HDMI settings in any future comparison videos. It just might save you guys a lot of hate mail.

We have to agree with Joystiq that we're not quite sure to whom the MadCatz HDMI Conversion Kit is supposed to appeal. Of course, not all 360s have HDMI, but we're willing to bet that anyone who really cares about HDMI probably won't want a converter. We're no technical wizards, but we know that unless the signal is HDMI to begin with, it's not really HDMI anyway. It does scale to 1080p, but so does every other available 360 connection option. We suppose there is the possibility that it's simply more convenient, as it replaces multiple RCA connector with one HDMI connector and an optional optical cable. Even then, $90 seems a bit steep just to clear up some cable clutter. Then again, if you're rocking a 1080p TV, another $90 probably isn't that much. Should you desire one of the wonder-devices, they go on sale beginning in January.

[Via Joystiq]

We're not sure who the market for these things is. On the one hand, every new Xbox 360 comes with an HDMI port built-in. On the other hand, if you've got an older system, it's more or less guaranteed to fail and the system you get back just may have an HDMI port in it. Process of elimination leaves people who've already had their 360 replaced and are left with fully functioning – yet cruelly HDMI-less – consoles, so we'll direct the remainder of this post to that no doubt highly lucrative demographic.

If staring longingly at your pal's HDMI connection has you feeling like less of a man, then consider MadCatz's HDMI Conversion Kit, available in January for the low, low price of $89.99. The device supports resolutions up to 1080p, includes an optical audio port, and comes with both HDMI and optical audio cables. Isn't that worth it for a strong, thick digital video signal?

[Via Engadget]

It's that time again when we open up the Sunday newspaper, gather up all the retail ads and painstakingly look for the best gaming deals this week has to offer. So, enough setup already ... let's get to it.

One of this week's best new release deals is at Circuit City where they're offering Stranglehold for only $47.99. That's a $12 savings which is quite the deal. We couldn't find any other software deals, but ran across Circuit City's 2-day Labor Day special (Sunday and Monday only) on a Premium 360 where they'll throw in a copy of Rockstar's Table Tennis and a wireless controller for free. Nothing amazing, but it's something. Finally, for those of you who want to be guaranteed a HDMI connection on your 360, Best Buy is advertising the "new" Xbox 360 Premium w/HDMI SKU. It's a very nice gesture that prevents online orderers from getting an old, HDMI-less 360.

That's all the noteworthy deals we could find in this week's Sunday ads, but we're sure you've come across other deals online so feel free to share with your fellow fanboys. You know, because sharing is the right thing to do.

If you or a loved one have been thinking of trading that glitchy Xbox 360 console for one of the newer HDMI-equipped models with the (thus far) more reliable Zephyr motherboard, you should be aware of what isn't included in this offering. While the premium experience of the Xbox 360 Elite nets you that 120GB hard drive and "elite" black casing, it also buys you an HDMI cable and an "audio adapter connector" that extracts either stereo or digital audio out of the box, if you're not into the whole HDMI audio thing.

There are two solutions for those of you with external stereo systems that don't support HDMI: 1) Buy the $50 HDMI cable with adapter or 2) switch your HDTV's audio setting to reroute audio from the internal speakers out to the stereo, as described by Joe Hutsko. If your setup requires the $50 adapter (with HDMI cable!), you can either consider the Elite and its massive hard drive for only $50 more or just hit eBay for someone else's leftovers. Just sayin'.

X3F Reader and Best Buy employee Zathu hit us up with some sage wisdom for those hunting down HDMI capable Xbox 360s. According to Zathu, his store got a fresh batch of them, and noticed that they have their own SKU and UPC, and anyone can simply ask their local Best Buy if they have SKU 8493838 in stock. He also notes that they should have a seperate price tag denoting the HDMIness of the console for easy pick'ns. That should assist any of you looking to get your hands on one.

[Thanks, Zathu]

Over on the NeoGAF forums, forum member wonderkins posted pictures of his freshly cracked open HDMI featured Xbox 360 Premium console to see if it had the new heatsink or the new 65nm chips. His findings were that the latest 360s rolling off the assembly lines do feature an extra heatsink, but they do not include any new 65nm "Falcon" technology just yet. We know that some of our fellow fanboys are huge tech buffs and will be sad to hear that news, because all they've wanted for their mid-August Christmas has been Xbox 360 65nm tech. But keep your chin up eager 65nm hopefuls, because the technology is guaranteed to be rolling out within' a few months, so you'll just have to wait a little bit longer.

[Thanks, Ryan Hartman]