Engadget writes "Well, that Xbox 360 Spring 2007 Dashboard update did land at about 2:00AM PST as expected, and brought with it a few fun features we were hot to test out -- but none more than the Xbox's expanded video playback capabilities. We were able to play back 720p and even 1080p MPEG-4 and H.264 content on our Xbox 360. Technically speaking the Xbox 360 now officially beats out the Apple TV in the digital video arena, both in resolution and bitrate. (At best the ATV only does up to 720p at 5Mbps, while the Xbox does 1080p up to 10Mbps; neither supports higher than stereo audio.) In other words, if you're an Xbox owner thinking about an Apple TV for playing back video in your living room, you might want to think again."
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