Sites are reporting on the Xbox 360 HD DVD Emulator that was announced by Microsoft this morning, and some HD DVD users might be wondering exactly what the heck it is and what it means for HD DVD.

The emulator is a $3K software product that involves the use of an Xbox 360 to simulate real-world HD DVD usage and performance. It generates a lot of diagnostic information that makes it easier on the programmers to debug problems. Developers can then use their time much more efficiently as they work on their disc features.

Though you download it via Xbox Live (with a silver or higher account), this is not a product meant for general consumer use, it’s for the content providers. If a studio has already started working on an HD DVD, this emulator means they’ll have more time to work on the HDi features of that disc, and they’ll have a much better way to test those features out.

Though it’s based on the Xbox 360, the work done with it is directly applicable and beneficial to all HD DVD players and movies. Programmers won’t throw out their PCs and burners, but just augment their workflow with this handy addition.

According to the press release, the beta program took place a few months ago and involved numerous participants including Deluxe Digital Studios, Enteractive GmbH, Imagion AG, Memory-Tech Corporation, and NetBlender Inc. John Harrington, Netblender’s CEO, said, “In the process of working with the new Xbox 360 HD DVD Player Emulator, we were able to cut the number of test discs needed per month from roughly 200 down to 50, saving more than 100 work hours per month. This positively impacted our business essentially overnight. We estimate we will recoup the low cost of the tool in less than one month’s time.”

With all this extra time on their hands, developers can experiment with more things and we should probably expect to see their results next Spring or Summer. Bringing titles to release faster should also have some impact on the studios, not just in their bottom-line (because time is money), but since they won’t have to wait as long for the work on these features to be completed, perhaps they’ll be able to crank out an additional title or two each month. We can only hope!

• Microsoft Press Release about the HD DVD emulator
• Technical information and purchasing information for the emulator
• Good explanation of why this emulator beats the simulator that’s been used all this time.