QUOTE(IntestineMan @ May 23 2006, 07:42 PM)

rasstar, Xbox360 is designed for more than gaming in mind. It has built-in DVD player, MCE integration and even plays audio and pictures from standard XP PCs (even portable music players). The upcoming HD-DVD add-on will give it another option. Some are using their Xbox 360 to stream HD content over lan right now to their HDTV from MCE. To make another arguement, we have played with friends on several occasions these DVD games like "Scene-It" and they can be pretty fun to play. Based on your arguments, DVD players should not be allowed to play anything but movies! I think it is neat when people find uses for things other than they are intended for.
Sorry buddy, I'm gonna have to agree with Rasstar on this one. The 360 may have features listed about the ability to play cd's mp3's and DVD's, but it's pretty poor in execution. DVD artifacting is worse than my 8 year old RCA deck, CD audio has no bass (not subwoofer channel, limited low frequency in the 2 channel proper audio signal), and $30 handheld MP3 players have better organization and display features. A HTPC, the Xbox is not.
DVD players should be allowed for nothing but movies, Mine's sitting right above my CD player which gets less use for audio than the turntable on the pedestal next to it.
Even the original Xbox has bad DVD playback (when not running XBMC). It'll be a hard sell to get me using the 360 for anything but games - ie, what it was designed (primarily) for. An all in one device as a gimmick ONLY.