Microsoft acknowledges Xbox 360 color space problem in last update, is working on a fix

While we found a lot of things to like in the last Xbox 360 dashboard upgrade, not everyone was happy after it finally rolled out in early December. We've received word from multiple owners who saw and reported color output problems since the beta began, and today Director of Programming Larry Hryb aka Major Nelson tweeted that the company is "aware of the color space issue w/ some Xbox video apps & are working on a fix". While that should take care of some issues, more recent reports also indicate problems with the HDMI output having HDCP authentication problems with certain TVs or receivers that blocks video output, as well as reports confirmed by Eurogamer that 1080p output appears to be downscaled to 720p internally. We're waiting for a response from Microsoft about these or any other issues and will let you know when we hear more. Let us know if you've noticed anything else in the new Xbox 360 update that needs tweaking in the comments below.

[Thanks, Vinny P, Brad R. and everyone else who sent this in]