Following rumours that Sony might add an iPod connection to the forthcoming PlayStation 3, it has emerged that Microsoft's Xbox 360 gaming console may also be able to connect with the iPod.

Analysts at Goldman Sachs have hinted that the next generation of the Xbox gaming console – due before the end of the year - may be able to connect with competitor products. Goldman Sachs told Forbes that Microsoft intends that the "networking and multiplayer interactive capability of Xbox 360, offer a free base layer version of [online gaming] Xbox Live (Silver version) free of charge to all Xbox 360 users."

Microsoft is using 3.2GHz PowerPC processors in the new Xbox. Apple also uses IBM's PowerPC processors.