Dutch Xbox site Xlife are reporting that Microsoft could be including DivX/Xvid playback support in the next Dashboard Update. Currently, the only way to play DivX files on the 360 is to convert them on a MCE PC before streaming them over to the 360. That could be about to change.

“After the event I had a short talk with the host and asked him whether there’d ever be support for DivX and Xvid playback. Much to my surprise he started telling me that Microsoft is working hard to implement this and a firmware update is expected within 2 months allowing you to play DivX and Xvid directly on the 360.”

Although this is, and remains, only a rumour, Microsoft could well be tempted to impliment this as the PS3 comes with DivX support out of the box.

Originally Written By: Scott Webber

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