Word has it that Apple's recent software update has just axed iPod functionality with Microsoft's Xbox 360, and iPod Nano owners claim that they cannot use their Apple gadget with Microsoft's next-gen console. However, iPod Touch owners claimed that such functionality never existed.

Whatever the true issue is, the few complainants have found that iPod playback on the Xbox 360 was removed after updating to the latest update of Apple's software. What was verified is that certain iPods do get detected by Xbox 360s, though the game console identifies them as "books."

Official word on the matter hasn't popped up from either Redmond or Cupertino, though news that even Apple's own support was surprised at the issue. They claimed to have never heard of it, and the complaint was the first. However, solutions have already been suggested, including reverting the iPod firmware to factory software to get the gadget to work.