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Ever since the first sit-down with gaming journos, Microsoft has been hyping a feature of the Xbox 360 that allows for an iPod — or any other MP3 player — to be plugged into a USB port on the front of the console and played as the soundtrack to a game. Cool beans! Until... Redmond, we have a problem. Music purchased at the iTunes Music Store will not be streamable through the 360 via the iPod. This is because of the whacked out DRM software within the iPod (same reason you can't stream those tunes through other iPod connectable devices). And because Apple and Microsoft are on bad terms ever since that triple-kegger in Jobs' backyard, there will be no compromise, says Microsoft product unit manager Scott Henson. "We do not have an official relationship with Apple for the iPod connectivity." Don't fret though; all your stolen music ripped CDs will still play on the Xbox 360 just fine.

iTunes Songs Won't Work With Xbox 360 [Kotaku]