When the last Xbox 360 dashboard was out, we heard a lot of problems regarding the color output on video playback and today Director of Programming Larry Major Nelson tweeted that the company is “aware of the color space issue w/ some Xbox video apps & are working on a fix”.

Well that is surely good news for Xbox 360 users, but according to recent reports 1080p output appears to be downscaled to 720p internally in the device. We haven’t heard from Microsoft regarding this before now. There are also said to be some problems with the HDMI output having HDCP authentication problems with certain TVs or receivers that blocks video output. We don’t really know if the fix by Microsoft will fix all those problems, but we’ll surely let you know if we get anything from Microsoft.