The XBox 360 is to include the Neon lightsynth from Llamasoft – a name which might be familiar to gamers who grew up in the 1980s 🙂 I believe that we got a preview of this in the MTV special, where there were large screens behind the bands that played in the show, and these screens showed images similar to the kind of visualisations you can get with Windows Media Player or iTunes – only much better! One intriguing aspect of Neon is that it can respond to controller input as well as music, so up to four people can “fly” it.
There’s a Neon demo movie you can download from the Llamasoft web site, and it does give some impression of what this can deliver. While the reaction of the images to the music was not all that obvious to me, it did hint at the graphical capability of the XBox 360.