According a blog post over at GamerScoreBlog
(the blog of Microsoft Games' marketing team) there are no HD-DVD games in the works for the Xbox 360. The HD-DVD player which is due out later this year will be exclusively for movies. Sony is claiming that their Blu-Ray disc will offer gamers better games with bigger worlds. MS points to 'Oblivion' as an example of a huge game that fits fine on a standard DVD.
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