Microsoft recently announced that it had changed the Xbox 360 warranty in the United States and Canada from 90 days to one year from the date of purchase, and now it's adding additional service enhancements.

Microsoft announced that TV series and movies from A&E Network, ADV Films, National Geographic and TotalVid.com will add to the more than 1,500 hours of downloadable entertainment content already available on Xbox LIVE in the U.S.

Microsoft announced the upcoming availability of Xbox 360 Elite, a new model of the video game and entertainment system that will include a 120GB hard drive, a high-definition multimedia interface (HDMI) port, a high-definition cable, and a premium black finish for the console, wireless controller and Xbox LIVE headset.

Microsoft announced that it is actively investigating "reports of fraudulent activity and account theft taking place on the Xbox Live network," after at least one Xbox Live user, over a month ago, complained about a hacked account and stolen credit card information, which the perpetrators then used to buy Microsoft Points, the virtual currency on Xbox Live.

Yesterday Take-Two revealed it was postponing the previously scheduled annual shareholders meeting to explore its options, one being a possible sale of the entire company. Today word has reached us through the grapevine by means of an inside source at Rockstar Vancouver, that "the buzz" in the hallways is that Microsoft might have put in a bid or expressed interest in purchasing the ailing publisher/developer. While this is a mere rumor, albeit from a reliable source, it is to be taken with a grain of salt. Just imagine the ramifications....

UPDATE: As rumors go, debunked by MGS' Vice President Shane Kim...

Check out the following new screens from Microsoft's GDC 2007 lineup:

• Blue Dragon (X360) - Screens
• Mass Effect (X360) - Screens
• Forza Motorsport 2 (X360) - Screens
• Halo 2 Vista - Screens
• Lost Odyssey (X360) - Screens
• Shadowrun (X360/PC) - Screens
• Age of Conan (X360/PC) - Screens
• Jetpac Refuelled (X360) - Screens & Trailer
• Boom Boom Rocket (X360) - Screens
• Pinball FX (X360) - Screens
• Schizoid (X360) - Screens
• Eets Chowdown (X360) - Screens
• 3D Ultra Minigolf Adventures (X360) - Screens

Microsoft has rolled out another patch for its Xbox 360, but without prior announcement. Calling it an operating system update instead of a firmware update or security fix, the new download addresses an issue where hackerz found an exploit allowing you to run your own software applications, such as Linux operating system. The vulnerability was discovered late last year and fixed last month. The update was distributed through Xbox Live but will also be included with every game after February 20.

Giving game developers the opportunity to create visions in a world where they make the rules, shape the characters and create the evolution of the story, Microsoft kicked off the Dream-Build-Play game development contest, offering a $10,000 USD grand prize and the opportunity for a winner’s game to be published on Xbox LIVE Arcade.

A dispute between Microsoft and Alcatel-Lucent over an MP3 audio technology patent issues relating to Windows has just turned ugly. A federal jury in San Diego has ordered Microsoft to pay $1.5 billion to Alcatel-Lucent, which might be emboldened by the outcome and file additional claims against other companies. Microsoft, who claims it rightfully licensed the technology from Fraunhofer, will seek relief or appeal.

Microsoft announced that Lionsgate Studio is now a Video Marketplace partner, and the downloadable content has been expanded with various new HD movies, TV series, including a FREE episode of ‘Skyland.’ Xbox 360 will digitally deliver TV shows and movies to gamers in the U.S. via Xbox Live.

Microsoft announced record revenue of $12.54 billion for the quarter ended Dec. 31, 2006, a 6% increase compared to last year, driven by Zune, X360 and its server applications. Despite increase in sales (from $1.69 billion to $2.96 billion) for the Entertainment and Devices Division, the Xbox has yet to make a profit as it currently has an operating loss of $289 million, slightly higher than last year ($286 million). With 10.4 million consoles sold Microsoft Games Division expects to turn a profit fiscal 2008 (second half of 2007).

Aces Studio is using the Microsoft Flight Simulator X technology to develop a new version of Microsoft Train Simulator. Unrelated to our previous Train Simulator development efforts, this version will be an all-new product built on the FSX platform, although Microsoft stated that it’s too early to discuss any product details, which are to come later this year.

Microsoft is offering customers 3 new ways to buy, upgrade or license multiple copies of Windows Vista. Windows Anytime Upgrade, Windows Vista Family Discount and Windows Marketplace will provide customers with greater flexibility in obtaining the new OS and will ensure they have the edition of Windows Vista that matches their needs.

Not wanting to be left out, Microsoft announced it was awarded the Emmy for Pioneering Work in Near and Real-Time Fully Programmable Shading Via Modern Graphics Processors for its DirectX technology, at the 58th Annual Technology & Engineering Emmy Awards, on Monday, January 8th at the Venetian Hotel in Las Vegas.

Several people have email in to let us know that apparently Microsoft has rolled out a new Xbox 360 update without any prior notification. When you log on to Xbox Live you will be prompted to download the new update which, according to MajorNelson adresses nothing major, just a few performance and stability issues.

During his keynote speech Microsoft Chairman Bill Gates' CES unveiled IPTV on Xbox 360, which will bring TV services into your home over broadband networks based on the IPTV Edition software platform. IPTV on Xbox 360 is expected to be available by holiday season 2007.

Microsoft announced that it will change the X360 warranty from 90 days to 1 year from the date of purchase in the US and Canada, on par with the standard 1-year X360 warranty that is available throughout most of the world. This also applies to those who already have an X360 and are still within their first year of ownership.

Macrovision announced an agreement to make its Trymedia games catalog available through the Microsoft Windows Marketplace, offering more than 1,000 popular core and casual downloadable games.

Flight Simulator X will present players with a wide array of new aircraft to fly in a beautifully rich and believable world which will contain greater detail than past entries in the franchise.

Xbox Live user REDRUM6622 claimed on the official Xbox forums that he has filed a class-action lawsuit against Microsoft because of the problems he and other users have experienced after performing the Fall System Update. He is demanding a jury trial, citing breach of contract, violation of consumer protection act (RCW 19.86), and negligence.

Marketing outlet IDC expects Microsoft to deploy no less than 90 million units of its upcoming Windows Vista operatin system in calendar year 2007, quickly displacing the majority of shipments of older Windows versions.

In an interview with San Joe Mercury News, Microsoft's president of Entertainment and Devices Robbie Bach said that the company's current primary goal is to "cost reduce the Xbox 360." Since Microsoft has a year's head start over the competition it will be able to drive down the manufacturing curve faster, an advantage over its rivals. Recently UK retail stores have started bundling the Xbox 360 with various top titles, making the console even more appealing.

An article in the latest PC Gamer issue showed a photo of a promo kiosk featuring a Gears of War Games for Windows retail box, indicating a port might be in the works. Now Microsoft, usually not commenting on rumors, issued a short statement that this is not confirmed, but merely a mistake by the artist as one of the MGS titles used as examples to show what their retail setup would look like. Still, no confirmation does not mean it is not true ...

A few days ago 20th Century and FOX announced they were withdrawing their financial back of the Halo movie, putting a dark cloud over the project. An article on United Press International claims that Microsoft plans to finance by themselves. Whether this is an actual statement or a mere misinterpretation of the official announcement is not clear at this point.

Microsoft Game Studios will partner with Academy Award-winning writer, director and producer Peter Jackson, and Academy Award-winning screenwriter Fran Walsh to establish Wingnut Interactive, a studio dedicated to the creation of world-class interactive entertainment. Two projects are already in the pipeline, one in collaboration with Bungie, set in the Halo universe, and the second will be an all new IP.