A big new system update for the Xbox 360 is in development and Microsoft is looking for people to test it. What will those people be testing? Well, apparently the update will feature a new Xbox 360 disc format! We’re not really sure what that will mean, but find out the full speculation after the jump!

The new Xbox 360 disc format

According to Major Nelson’s blog Microsoft is “conducting an open call for US based participants for a public preview to help us prepare for an updated Xbox 360 disc format. This is an important update as we continually strive to improve our products and we could not do so without the help of our great Xbox community”.

So, a new Xbox 360 disc format. This could mean a new way of disc data compression, resulting in more room on the DVD, or less space needed for encryption/security data als resulting in more space on the DVD. Or maybe the disc has a totally new kind of security, making it harder for pirates to play the games illegally.

Whatever this update may be, I’m sure it will be beneficial to us gamers and may give (Kinect) developers more options when they are developing their games. I can imagine that developers will go through a great amount of trouble to try to squeeze all their data on one disc (as having two discs is more expensive and less convenient) and this update might give them a bit more breathing space.

Get Halo: Reach for $0.00

Ow yeah, if you opt in to help out (US only) and test the new update for the people at Microsoft you will get a copy of Halo: Reach for free! Is that cool or what!

Any thought on what this mysterious new disc format could entail?