Microsoft Explain How Their HD-DVD Add-on Works just updated with the following information explaining how the new HD DVD addon will work. The site explains: “This new accessory will connect to the Xbox 360 console with a USB cable, enabling it to harness the power of the Xbox 360 console for the HD video outputs and digital surround sound. As an accessory, it becomes another shining example of the flexibility of Xbox 360 designed into the console in order to grow and add new features. It’s also just one of several new accessories being announced at E3.

Excuse us for a second if we are not that excited of the possibility of HD-DVD via USB. It seems like MS are trying to hard to spin an add-on into something positive.