XBox 360 & iPod - 2geths 4evs?

We always thought that Microsoft considered the iPod the
digital audio player that must not be named, but apparently, the company is practical enough to know when showing
compatibility with a market leader can be advantageous. At least that seems to be the reason Microsoft chose to
pair an Xbox 360 with an iPod mini at a London demo, where the company was showing off the 360's ability to grab
audio and photos from a USB device. Audio saved as MP3 or WAV formats can be used as a game soundtrack, and photos
can be displayed as slideshows. And, no, the 360 doesn't support Apple's DRM'd AAC files; it looks like the iPod
(or just about any other USB storage device) connects in mass storage mode and the 360 just reads compatible files
from its directories.

[Via Joystiq]