Intel unveiled its upcoming GN40 chipset will be able to playback some 1080p HD content, but not all. The chipset should be able to cope with 1080p HD playback for typical broadband Internet content, but 1080p HD video from Blu-ray discs will overwhelm the chip.
This is what the product managers from intel have to say: “GN40 is designed to do 1080P HD playback for typical broadband internet content; it is not designed to enable full Blu-ray capability where the bitrates and demands of multi-layer content are significantly higher than that of internet HD content.”
The way we understand this statement is that some 1080P content from the internet might have a chance, but not as extensive as the one you find on Blu-ray discs. We are quite sure that Microsoft’s 1080P WMV file format should work, while 1080P decoding of H.264 and VC1 might not.