
IGN Has just updated this article with Microsoft's Response:
Microsoft just got back to us to clarify the Xbox 360's ability to transmit a digital signal. In short, it can, which means that Microsoft could conceivably release an HDMI cable for the Xbox 360. This is good news, and relieves a great deal of our concern over the Xbox 360's ability to effectively work with 1080p. Microsoft's full response is marked in the Q & A portion of this feature.
With this new information in mind, consider us relatively mollified. A future HDMI cable for the 360 will resolve the problems we outline in our discussion of 1080p compatibility. Let's hope Microsoft decides the market demands it sooner rather than later.

A brutal reset, a smarter story, and a return to what made it great—Mortal Kombat (2011) revived the series.
15 years went by so fast. I remember playing through the story mode at launch.

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It's a step forward for Stop Killing Games.
Microsoft burns naysayers again.
Glad they finally confirmed it. Right, what other fanboy arguments can they come up with?
and a total cost of 1500$ and 360 would have every feature the ps3 has, soon they are going to release a ps3 faceplate (with spider-man font) for 360.
Just as I thought a Sonyfanboy that claimed 360 wasn't capable of 1080p would now say yeah BUT....and so now its about "add-ons." I'll resist the urge to tell the "Sonyfanboys", I told you so....still not a big deal, but I do feel very, very, sorry for the 5 people who have 50" 1080p HDTV's, 'cause they are going to have to suffer with 720p and 1080i like the rest of us, damm what a shame, hey guys just be patient, next year when there's 10 people with 1080p HDTV's M$ will release the HDMI cable and then maybe by then you can afford a few more bucks for this "add-on".....again for the 2% who care.
IGN: Can the X360 send out a digital signal now, or ever?
Microsoft: Xbox 360 currently doesn't include a digital out connection for video... but [at this time we] have no announcements regarding additional cables or connections.
title of this "news" is a little misleading, no?