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You should read this first. In short, the article is about content providers having the ability to "cripple" the component outputs on HD-DVD players like below.

Toshiba's first model for HD-DVD. Retails for $500 at Crutchfield.
A bit shocking, isn't it? To give content providers (like movie studios) the option to downconvert the component outputs to 960x540. While I can see why they would allow this to happen (for older, non-HDTVs), it is an utterly absurd solution. One additonal reason is to help the public with the transition from standard 480i/p content into eventual HD content. Yet, an underlying, hidden reason to do this is to help circumvent piracy. But copy-protection schemes have been broken in the past.
A better solution is to allow the players to do their job, which is to display in 720p/1080i, with the ability to downconvert to 480i/p. This option should be set by the consumer at the player's settings menu, and default to a specific setting.
In any case, this could be a hot topic concerning the next generation DVD war between HD-DVD and Blu-Ray. And this option will only set to confuse less knowledgable consumers in the short run.
So, you've probably heard by now that Major League Gaming procured a TV deal with the USA network. As you may know, MLG teamed up with us on Texas Showdown 5 and on Evolution
And now, they are on television. Good for them. And I wish them luck. They'll need it, too, since video games as a competitive event is not as exciting or as easy to follow as the three major sports (Sorry Hockey, you took a year off). 2005 in Las Vegas. Texas Showdown went on to arguably be the best tournament that year, while Evolution 2005 had a large divide between the Halo 2 and the fighting games crowd.
To the casual observer, Halo 2 is not easy to follow.FPS games are not easy to follow. In fact, it gives some observers and gamers motion sickness. Unless you are playing the game yourself, you might find yourself having a hard time following the action. That goes for any other game (except fighting games - MvC2 not included). Unlike in sports or competitive games like in Poker, there is no charisma to draw from. While there might be charisma between the player and the character(s) he/she is playing, that necessarily doesn't hold true to the casual observer. Let's face it, when you see a game you particularly like at a gaming kiosk, you want to play it yourself.
With that said, while there might be some charisma coming from the players themselves, their focus is usually taken away by the action of the game. The charisma given off by sports athletes simply cannot be compared, as they are finely tuned humans who usually are in great physical shape, who do what they do like no other. I'm starting to ramble, but the simple point is this: Video Games make for great entertainment, but they do not necessarily make for great television. Well, not Super Smash Bros. and Halo 2, that is.
Looking back, we've come a long way since the sounds of bleeps and bloops of video games 20 years ago. 5.1 Dolby Digital sound, immersive environments and creative music now fill our ears when we now play our video games.
But now there is something else out there, something that has come quite subtle... music by "real" musicians. It's been around for quite a while now. Remember the arcade shooter Revolution X? They used Aerosmith to help sell the game by including their faces and tracks.
Not so anymore. There now several games out there that incorporate soundtracks in order to enhance the game. The Gran Turismo series, Project Gotham Racing and many of the EA Sports series all have soundtracks that include both established and upcoming artists.
No longer is the case where the artist drives the game. It is the game that exposes the user to new music. I do remember in Madden 2003 in which a little band called Good Charlotte had a song called "The Anthem" well before it became famous on MTV and radio.

Good Charlotte's "The Anthem" was a
recognizable tune on Madden 2003 long
before MTV.
This is another reason why video games are now the big time - it can increase exposure of a certain musical artist and lead to fame, fortune, etc. just like it did for Good Charlotte. I'm willing to bet a dollar that the record companies are taking note of this. It may not be as upfront as ITunes and MTV, but it does reach a large audience, and can impress itself upon a gamer many, many times; leading to future sales.