There has been some strong rumours going on for the last few weeks, and earlier today Japanese sites dropped the bomb. We now got the official word from Microsoft - read more inside.
Quoting Microsoft press release:
Beginning the morning of Tuesday October 31, owners of the Xbox 360 video game and entertainment system from Microsoft™ will be able to download a free system update that will provide more than 85 new features and enhancements, including support for native 1080p games and movies, faster Xbox Live Arcade game list display times and even more choices when it comes to video playback options.Click for full list  
All comments (96)
Commented on 2006-10-30 18:24:30
Commented on 2006-10-30 18:35:59Also, faster Live downloads, thank you very much.
Commented on 2006-10-30 18:46:45- ability to put a different custom picture on each blade (currently you can pick one that shows on all).
- better rewind/ff performance in videos (especially rewind).
- ability to skip stupid unskippable movie logos and warnings on DVDs and yes, even some games are doing that crap now.
Commented on 2006-10-30 18:49:40Play videos from DVD or CD data discs!!!!
YES! YES! YES!!!! YES!!!!!!!
YEEEEEEEEEEEEEEEEEEEEEAAAAAAAAAAAAAHHHHHHHH!!!!!!!!!!!!!!!
Now, how about some lovely BC support then?
I still want my 720p Otogi 1 and 2...
Commented on 2006-10-30 18:54:30
Commented on 2006-10-30 18:57:53You can do it M$!!
<_<
>_>
*_*
Commented on 2006-10-30 19:11:21
Commented on 2006-10-30 19:12:12
Commented on 2006-10-30 19:15:08and of course it will propably only play wmv NOT divx/xvid which would be TEH KOOL :)
anyhow - cant wait to check it out tomorrow ^_^
Commented on 2006-10-30 19:21:21
Commented on 2006-10-30 19:26:15 In reply to barbasol- ability to put a different custom picture on each blade (currently you can pick one that shows on all).
Commented on 2006-10-30 19:42:00
Commented on 2006-10-30 19:43:41
Commented on 2006-10-30 19:49:10
Commented on 2006-10-30 19:57:49
Commented on 2006-10-30 19:59:55
Commented on 2006-10-30 20:02:21 In reply to Tiz
Commented on 2006-10-30 20:15:17
Commented on 2006-10-30 20:27:44
Commented on 2006-10-30 20:34:24The majority of HD users needing higher resolutions will be using a regular HDTV, and not a monitor. I know, it sucks, my monitor is 16:10 too..
Commented on 2006-10-30 20:39:20
Commented on 2006-10-30 20:56:30
Commented on 2006-10-30 21:35:56
Commented on 2006-10-30 22:23:36
Commented on 2006-10-30 22:45:01 In reply to abaddon1125The majority of HD users needing higher resolutions will be using a regular HDTV, and not a monitor. I know, it sucks, my monitor is 16:10 too..
I would be interested to know if MS are supporting intermediate resoltuions also. (i doubt they will, as 1440x900 is a very odd resolution and only a handful of monitors use it)