The HDMI audio output will still not be fully functional as many users hoped. The Elite will not output uncompressed multi-channel audio. HD-DVD users should look elsewhere if they hope to enjoy the lossless HD-DVD audio formats.
“If you are keen on having 5.1 PCM output, I recommend purchasing the Toshiba A2 player which after the price drop, will be much cheaper than Elite" was one such resonse to the audio functionallity of the Elite.
All Dolby Digital Plus and TrueHD audio tracks will continue to be down mixed and the output would be no different than the Xbox 360 Core or Premium systems.
Nevertheless, the Xbox 360 Elite can output 2-channel PCM audio over HDMI. “The goal was to provide a digital connection for video which people wanted for some of their TVs. And of course, single cable A/V connection. So if having analog video bothered you before, you can now use digital. If you lacked component/VGA on your TV, you are in business with Xbox 360 Elite.”
There will be a spring HD-DVD software update that should introduce DTS audio output capabilities to existing Xbox 360 Core and Premium systems.
Source:
Dailytech