This is not an unbiased source. But Dean Takahashi, Mercury News contributor, asked for an explanation of why someone would want HDMI on their game console. Here's the comment from Kasey Holman, senior director of Corporate Marketing, HDMI Licensing, LLC:
Consumers should expect to see a number of benefits from integrating HDMI:
1) HDMI's digital video interface will provide the best quality of the video since there are no loss conversions like analog component. The difference is especially noticeable at higher resolutions such as 1080p. Digital video will be sharper than component, and eliminates the softness and ghosting found with component. Small, high contrast details such as text bring this difference out the most.
2) With HDMI, the xBox will be able to take advantage of the highest quality audio (all versions of HDMI support 8-channel, 192kHz, uncompressed digital audio).
3 ) HDMI ensures access to premium HD content now and in the future. HD-DVD and Blu-ray have delayed the activation of the usage constraint token (aka Content protection flag) with today's HD movies for transition reasons, but have made it clear that it will very likely be turned on in a few years, meaning future HD movies will then not be viewable at HD resolutions over unprotected interfaces such as analog component.
4) With HDMI, the Xbox will automatically deliver the most effective format for the display that it is connected to - eliminating the need for the consumer to scroll through all the format options to guess what looks best. The XBox can read the Display's EDID to determine the best format automatically (e.g 1080i vs 720p, 16:9 vs 4:3)
5) General ease of use with a single cable for audio and video. If you take your XBox to a friend's house to network the 360's together to play multiplayer, it's nice that you only need one cable to jack into the TV.