A new software update this week from Microsoft for its Xbox 360 game console will allow the console's add-on HD DVD player (not yet released) to output 1080p to 1080p TV monitors.

The Microsoft update adds nearly 90 enhancements to the Xbox, which is gearing up to take on the delayed launch of PlayStation 3 this month. One enhancement will include the ability to play WMV files from a connected PC, disc or USB storage stick, according to published reports.

To coincide with Sony's planned PS3 ramp up, Microsoft plans to begin offering its HD DVD add-on drive in a couple of weeks for about $200. The free update will be distributed to Microsoft's members via its "Xbox Live" online network.