The new XBox 360 can connect directly to an iPod letting you play music and slideshows directly on your TV, bringing us one step closer to an all-in-one home entertainment center. Microsoft demonstrated plugging in an iPod mini using a standard iPod USB cable during a presentation in London, then using the stored music as a sound track for a video game.

Microsoft Vice-President J. Allard, speaking with journalists at the end of the X05 trade show two weeks ago, revealed that he wants to make sure the company's upcoming Xbox 360 videogame console is fully compatible with iPods and other portable devices.

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The Microsoft executive also revealed: "Anybody in my company who thought this was a bad idea to plug in Sony or Apple devices into this thing, I ended that conversation pretty quickly. This is the right thing to do for consumers." He added that he doesn't want Xbox 360 owners to have to buy 360-branded devices when they already own such things and want to use them with the new system.