Dolby Laboratories (NYSE:DLB) announced today that the new Xbox 360(TM) video game and entertainment system from Microsoft will support Dolby(R) Digital surround sound for both games and movies. This next-generation game console includes both interactive Dolby Digital 5.1 surround sound for game play, as well as Dolby Digital decoding for video playback.

The combination of these two Dolby technologies enables consumers to enjoy their games and movies in cinematic 5.1-channel surround sound on the tens of millions of home theater systems worldwide equipped with Dolby Digital technology.

For game play, the Xbox 360 features interactive Dolby Digital 5.1 surround sound, allowing next-generation games on this platform to deliver a highly realistic sound field that places gamers in the middle of the action. Dolby Digital 5.1 surround sound gives gamers a competitive advantage by allowing them to hear enemies that may not be visible on the screen.

Microsoft also included Dolby Digital decoding in the Xbox 360 for video playback, including playback of DVD movies. Dolby Digital decoding allows this platform to play the incredible number of DVD movies available today with Dolby Digital soundtracks. With Dolby Digital, DVD movies provide the same pristine sound found in movie theatres all over the world