360 Optimized Source Engine, Devs Rejoice [Update]

Courtesy of the guys over Xbox360fanboy comes the heads up that Valve, creators of the quite masterful Source engine, has announced "the availability of the Source engine as an official middleware option for developers on the Xbox 360."
What does this mean i hear you cry, well, according to Valve

"The combination of Source and the Xbox 360 provides game designers throughout the industry the chance to create powerful entertainment experiences, 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."

So there you have it, couldn't of put it any better myself! Also to note is that the engine has been optimised to utilise (love that phrase) the 360's graphics hardware, including full Xbox Live support, good stuff.

UPDATE: Xbox360fanboy have also pointed out that Joystiq followed up this announcement by interviewing a Valve employee about the optimized Source engine. Some clarification for anyone a little confused by the announcement, and a little further info about the different between the PC Source engine and the 360 optimized Source engine.