Many people seem to assume that this means that Xbox360 games will come on HD-DVD discs at a later date. This just wont happen.
The later models of the Xbox360 will likely only play HD-DVD *movies* but the games will still be locked with only DVD capabilities.
They wont be able to establish a new standard for the games later, the day they launch, they basically establish a precedent, one that can't be changed, news articles should not be so vague and misleading.
The truth is it really wont. You can't just change the standard of a console after it's been launched, it would mean that gamers would have to buy a new system to play the new games, which means it would be the same as launching the system all over again from the begining.
This is *exactly* why add-ons like the Sega CD and Sega 32x failed in the past, because you had to buy a bunch of extra hardware to use them, which was essentially like buying a completely different system. It just wasn't practical.
In this situation it's even worse because Microsoft would end up confusing people since it's not an add-on. People would not get why new games don't work on the system, and would feel ripped off.