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 do the same. 

Analysts at Goldman Sachs have hinted that the next generation of the Xbox gaming console – due before Christmas this year - may be able to connect with competitor products.

Goldman Sachs told American money magazine, 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.”

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