In December, after Microsoft launched the massive Dashboard update for the Xbox 360 console, reports started to come in that the quality of the console's video playback was not as good as it was before the update. Users complained on Xbox message board about issues with washed out colors and poor video compression. Eurogamer.net's Digital Foundry did an investigation and concluded that there were indeed some problems with the Xbox 360's video playback. However, Microsoft didn't respond to the complaints at the time.
On Thursday, Microsoft decided to admit there was a problem with the game console's video playback. Microsoft's Larry Hyrb posted a note on his Twitter account saying, "We’re aware of the colorspace issue w/ some Xbox video apps & are working on a fix. No ETA yet but we hope to have an update soon."
While that sounds like good news on the surface there have been more reports of other video issues with the Xbox 360. Earlier this month, Digital Foundry did another investigation and found that 1080p video outputs can play back but have been scaled down to 720p resolution, among other issues.
We do have to wonder why Microsoft elected to launch the new Dashboard update with all of these fairly obvious video issues. Hopefully Microsoft will get all of these video playback problems solved in the near future.