While old school Xbox 360s will probably require a firmware update of some sort to get its IPTV on, Dean Takahashi at Mercury News says that the totally unconfirmed but widely expected Xbox 360 Elite will come IPTV-ready right out of the box.
This jibes with what I was told back in January when I asked Microsoft reps during the IPTV demo about a souped-up 360 to more adequately handle the demands of IPTV—namely a high-def output (HDMI) and a larger hard drive, which was to "stay tuned." With VOD (which is built into the IPTV setup, along with Live Marketplace, obviously) and DVR, 20 GB just doesn't cut it, regardless of how good the compression is.
VOD? IPTV? DVR? Media streaming? The 360 is looking more and more like the best convergence box of its generation. I'm all over that Elite, whenever it drops. Of course, it helps I didn't already spend $400 on the soon-to-be lame-o regular 360. Suckers.
Image note: The IPTV screenshot is real, the Elite mockup probably isn't