Programmers posting on the XboxHacker Web site said they have completed an initial version of "Xbox Media Player." The software allows modified Xbox consoles to play videos in the VCD format, commonly used for bootleg movie discs, and versions 3.x and 4.x of DivX, a compression format used to swap videos over the Internet. Future versions of the application will include support for MP3 and Windows Media Audio files, according to the developers.
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Microsoft representatives have said the software giant is investigating legal options to shut down makers of mod chips.
Hackers have beenever since the Xbox went on the market to exploit the console's PC-based design and run their own software.
Projects in the works include an effort to port the open-source Linux operating system to the Xbox and several projects to create "emulators" that would allow the Xbox to run games created for other home consoles and arcade machines.