Rumour has been flying around that Microsoft will add support for Divx and Xvid video playback on the Xbox 360.

Right now, if you want to play any videos in divx you either convert them to wmv format (yuck) or use another tool like Transode360 or vlc360 to convert on the fly and stream the videos to your xbox, of course you’ll need to have another computer online and using Windows Media Center. There’s also a commercial alternative for Apple computers but I don’t recall the name.

The rumour states the update will come in the form of a patch in 2 months time. Let’s hope this is true, I always thought it was stupid having a Xbox that works as a “media center” without support for common video formats like divx.

You can find the rumor at Xlife.nl.