Well, it certainly makes sense they'd optimize it with Half-Life 2 coming to the 360, but from Valve now comes official word that the Source engine has been optimized for licensing for the Xbox 360:
"The combination of Source and the Xbox 360 provides game designers throughout the industry the chance to create powerful entertainment experiences," said Valve president and co-founder Gabe Newell. "Whether they're pursuing a traditional FPS, RTS, RPG or delving into new genres, Source and the Xbox 360 are designed to offer the flexibility and tools to allow designers to pursue any design imaginable."
Not much more to say except "neato." It's a great engine.
Valve's Source Heads to Xbox 360 [Next Generation]










