The second Xbox 360 revealed: codename Zephyr - Engadget
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Ever wonder why Microsoft hasn't released an HDMI cable for the Xbox 360, or whether the AV port was really capable of digital out? Well, here's your answer: we landed pictures of what appears to be the second Xbox 360 -- the Xbox 360 v2, if you will -- codenamed Zephyr. (The original Xbox 360, if you recall, was codenamed Xenon.) The long rumored about and awaited update to the console won't just feature a new, cooler 65nm processor, it's also finally added an HDMI port for full digital 1080p pleasure, as well as a 120GB drive, just what the doctor ordered. The 120GB drive may or may not come bundled with the kit, we don't yet know, just as we also don't yet know how much a Zephyr 360 is going to run (we imagine it'll go for the same price as currently so they can keep up a little on their expanding margin). But our very kind Xbox insider seemed happy to let us know we'd be able to get them "soon."
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I hate to say it but... DAMN MICROSOFT! This appears to be an even bigger dick move than when Nintendo revealed the GBA SP on January 14th. Everyone with their shiny new 360s for christmas are letting out a collective "the hell?" Okay, a bit of an exaggeration.
This is great that Microsoft is stepping up to acknowledge the need for HDMI for true 1080p output. Especially considering, due to the hollywood standards, many HDTVs actually lock out 1080p unless the signal comes from an HDMI cable. But the question that remains now is, what about all those people who already own a 360 (like myself)? It's unlikely that we'll see a discount on the upgrade (esepcially considering the same price I would spend on a Microsoft 20GB HD equals a 160GB for my PS3). In fact, while Engadget is expecting a static price, I'd say this is the often mentioned prelaunch "third option" with a price likely comparable to the baseline PS3.
One thing is certain, though. While the media and websites don't consider PS3 a threat to 360, Microsoft obviously does. I can't help but think how the consumers will feel in the inevitable arms race to continue.