According to a pre-CES briefing that Windows expert Paul Thurrott received from his Microsoft pals, the big M will be coming out with a new version of the Xbox 360 (Zephyer?) at the end of 2007, which will feature a larger HDD and some new hardware to enable that IPTV functionality Robbie Bach was talking about during the Microsoft CES keynote. It also stands to reason that such a Xbox 360 might be sporting a fancy new HDMI port and perhaps run just a wee bit cooler -- meaning HDCP and less fan noise, natural fits for home theater use. It still seems a bit unreasonable for Microsoft, which has been bragging about its 10 million strong installed base, to leave those early adopters out in the cold, but if that's the way it goes down we can't say we won't welcome the excuse to ditch the fan and disc drive hullabaloo of our current gen box.

[Via Digg; thanks to everyone who sent this in]

Sony BDP-S1 firmware update