It's been almost two months since the Xbox 360's latest dashboard update, and during that time it's become ever-more apparent that the new system's video playback is simply not working properly. Eurogamer even did an in-depth breakdown of the issue over a month ago. Basically, colors are not displaying right. Video for some people appears grayish and washed out, and there's nothing they can do to fix it.

Microsoft has finally acknowledged that there's an issue, though not before reportedly deleting the comments of beta testers who pointed it out months ago. Major Nelson tweeted: "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." Better late than never, right?

Have you experienced these issues or found a fix? Let us know in the comments or on Twitter.