Xbox Live to offer HD movie downloads?

That title certainly got my attention. EngadgetHD is reporting on wild ass rumours that Xbox live may have a HD download service. Over 1000 hours of movies will make it on to the service with rentals costing 4 dollars a pop. Is Sony nervous?

From the article:

Seriously though, what a coup would that be if Microsoft swooped in to make the Xbox 360 the premier digital content hub -- with or without HD DVD -- right underneath Sony's nose at the eve of their PlayStation 3 launch? We just hope Microsoft would have a larger drive waiting in the wings if this one turns up roses though, our 20GB is already packed to the gills with game demos.