It's been a month since we reported various video playback issues on the Xbox 360. Many Shackers have also confirmed that the latest update waters down image quality in videos (game playback is unaffected). "Blacks definitely look grey to me no matter what the video source is on the 360," Evil Benius stated at the time. Other users have also reported HDCP errors since the latest system update.
One month later, Microsoft has finally acknowledged the issue.
"We’re aware of the colorspace issue w/ some Xbox video apps & are working on a fix," Xbox Live's Major Nelson tweeted. Unfortunately, "no ETA yet but we hope to have an update soon."
Given the severity of the issues plaguing Xbox 360 systems since the update, a fix would be better soon than later. Eurogamer notes that "in addition to the previously-reported issues, a more in-depth analysis of the final update also revealed that 1080p video files were being downscaled to 720p."