Microsoft is working on an update to the Xbox 360 that will fix problems with the console's quality of video playback. Last month, the console received a firmware upgrade that added a slate of new features but also cut back on video playback quality for users who watched Blu-ray movies, downloaded content, etc.
That is, with the exception of videos that were purchased through the console's proprietary Zune Marketplace digital download platform.
Specifically, it appeared that after the most recent Xbox 360 update, those Zune Marketplace videos were the only ones that users could play in full 1080p HD quality.
In other words, if you tried to watch a TV show or movie that you didn't pay Microsoft for, the maximum playback output was 720p. However, somehow, if you were watching a TV show or movie that you bought from Microsoft, it was available in 1080p.
Of course, before the latest firmware update, all videos could be watched in full HD, so it seemed like this was an intentional effort to force people to buy their video content from Microsoft.
Without acknowledging any such underhanded motive, Xbox Live spokesperson Larry Hryb wrote that the next update will provide "a fix to a colour issue that some were experiencing, and it will be immediately notable in the dashboard. The fix is also being applied by partners to their apps on Xbox Live, which we expect to roll out over the coming months."
He said the update "is part of our continued effort to provide the best possible Xbox Live experience."