That's the rumor that has been floating around the interent since E3. This German site (translated via Google) claims to have knowledge of a "backroom agreement" between hardware manufacturers and studios that would allow for full-resolution output through analog connectors until at least 2010. The theory is supported by the Xbox 360's HDMI-lacking HD DVD add-on, and the budget PS3's similar lack of a protected output. Still, rumors and back room agreements won't do much to ease the concern of HDTV owners with only analog inputs, and people considering buying a next-gen console to double as a high definition DVD player.
The longer the issue remains in limbo, the longer prospective buyers will be content to ride the fence, so lets hope they make a public decision and soon.
[Thanks for the tip via AVS Forums David!]
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