The whole "digital entertainment hub" angle Microsoft are aiming for with the XBox 360 became clearer after I read an interview on Tom's Hardware Guide with Jeff Henshaw (executive producer of Digital Entertainment for the XBox); any device that has a USB 2.0 port will be able to be hooked up to the console, including the Sony PSP and Apple's iPod (Bill Gates confirmed this in a recent interview with Time Magazine) among lots of other devices:First he plugged in a Rio Carbon and began streaming tunes over the Xbox's sound system right from the MP3 player itself. Next, he took a Kodak EasyShare camera and snapped pictures of all of us, plugged the camera right into the 360 and displayed us on screen. You can even plug in a Sony PSP and watch pictures and listen to music it contains.
When asked what the thinking was behind letting gamers plug a competitor's product in to use on a Microsoft device, Mr. Henshaw replied, "Other console makers want to force you to buy brand "S" memory and use a brand "S" format to play on brand "S" TV's. We just want things to work for the gamer and be as easy as possible."
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