At the onset of the Tokyo Game Show, Microsoft has made a shocking announcement. The company plans to add 1080p support to the Xbox 360 via the Fall software update over Xbox Live this year. The 1080p support will allow that resolution to be used for games as well as movies.

Some of the playable titles at the show include Blue Dragon (expected to release in Japan this Holiday season), Lost Odyssey and more. Microsoft also announced a new RPG titled “Infinite Undiscovery” due to release in 2007 that the company will publish itself. Infinite Undiscovery also happens to be the the oft-mentioned title that Star Ocean and Valkyrie Profile developers, Tri-Ace, are working on.

Some of the new Xbox Live Arcade games announced are Gyruss, Rush ‘n Attack, Yie Ar Kung Fu, Contra and Track and Field all from Konami. Namco Bandai will be throwing titles such as New Rally-X, Dig Dug and Ms Pac-Man into the mix as well.

A few details were released about the HD DVD player as well. Japan will get the device on November 17, for a price of ¥19,800 (approximately $168.73 USD at current exchange rates). The unit will come packaged with a universal remote. That’s definitely more expensive than Peter Moore alluded to back at E3 when he said the combined price of an Xbox 360 and HD DVD accessory would clock in lower than the PS3.

The Tokyo Game Show is just getting underway. We’ll be back with more news as it breaks.