ATI has announced that their H.264 video decoder has been chosen by Microsoft for the Xbox 360 HD DVD player. Here's part of their press release:
ATI Technologies (TSX:ATY.TO - News)(NASDAQ:ATYT - News) today announced that Microsoft Corp. has chosen ATI's H.264 decoder for the Xbox 360(TM) HD DVD player, bringing users sharper, more true-to-life visuals and smoother playback of high-definition content. HD DVDs encoded using one of three approved codecs deliver up to six times the resolution of traditional DVDs all on a single disc. Built on ATI's Avivo(TM) technology, the decoder used for the Xbox 360 HD DVD player brings to bear ATI's considerable multimedia know-how to ensure gamers, home theatre buffs, and casual viewers alike get a more perfect picture from the H.264 format.
If you'd like to read more, the entire press release is available on ATI's website.