THE BUZZ: Microsoft is working on a fix for colorspace issues with Xbox 360 video playback.

The recent dashboard update reduced the video quality on the Xbox 360 with content being forced to run at limited RGB levels, resulting in a washed out look.

“We’re aware of the colorspace issue w/ some Xbox video apps & are working on a fix. No ETA yet but we hope to have an update soon,” said Xbox Live’s Major Nelson on Twitter.

EGM’s TAKE: The major concern about this issue is that Microsoft was made aware of it during the dashboard’s beta test phase and did nothing about it. Many threads appeared on the testing forums discussing the issue but all were closed with Microsoft stating that they were aware of the issue. The fact they knew it was a problem and yet went ahead with the launch anyway suggests that they didn’t expect it to be as big an issue as it has become, or that they simple don’t know how to fix it. Either way it’s annoying a fair chunk of Xbox Live users and is bad news for digital streaming services that use Xbox Live to distribute content.

Have you encountered the issue? Leave a comment below.

Source: Twitter