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Microsoft Addressing Video Playback Issues
The recent Xbox 360 dashboard update is causing color and resolution issues for video playback. Microsoft says it's looking into it.
According to reports the 360is setting incorrect black levels for all video playback. The result is washed out colors and greyish black levels. "We’re aware of the colorspace issue with some Xbox video apps & are working on a fix," said Microsoft's Larry "Major Nelson" Hryb on Twitter. "No ETA yet but we hope to have an update soon."
Additionally, a report on Eurogamer notes that the dashboard update has made all non-Zune video content limited to just 720p output. Microsoft has no commented on the resolution issue just yet.
[Souce: Engadget]