In this age of streaming from the net and from the computer it is unthinkable that xbox would not include MKV and MTS codecs into their 360. The MKV codec is used extensively on the internet for hd programing and MTS is the format shot by HD video cameras. The PS3 supports MTS. It is a shame to come so close and miss the mark. This is an easy fix add the codecs to the coming fall update.
Thanks