Boxee might have another problem when it's released. Some are thinking that the new XBox 360 might have a cheaper counterpart come the holiday season. The idea is that as the current inventory of the "old" model 360 is depleted, it would help Microsoft to have another "Arcade" model with a smaller hard drive that could run $199. At $199, I'd really have to think about the value I'm getting with a Boxee Box.

Does anyone know if the XBox can play MKV files? I'm assuming no, so that would be a big minus.