Upgraded Xbox360?

I previously posted about my frustration with the XBox360. The problem is that while it supports HD output goodness; the product was crippled by the lack of a true digital output. That is, it could only output video via component which while high quality, is not as good as true digital. (e.g. HDMI or DVI.) Interestingly, it sounds like they were aware of the problem as well and have a plan to correct it. I ran into this article at Gizmodo.

Basically, the article indicates MS is going to refresh the XBox360 with a new CPU, HDMI and potentially a larger hard drive. IMO, this really makes the 360 a more compelling platform and helps level the playing field vs the PS3. Of course, nothing has been formally announced and so this should be categorized as a rumor.

Of course, it is unclear when or even if I will buy an Xbox360. Even if I had ~$600 burning a whole in the pocket, it is still unclear whether I would go with a PS3 or XBox360. Certainly the upgrade 360 platform goes a long way towards making the platform decision more difficult.

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