Xbox 360 Update Includes PayPal Integration, Support for New Disc Format

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In about a week’s time, owners of Microsoft’s game console will have another way to pay for their Xbox Live memberships and DLC, when PayPal support happens by way of a spring update. If you’re setting up through the Xbox accounts web site, you can already choose the popular payment service as a billing option but the update will let you do so on the console.

The timing’s probably just a coincidence but PayPal integration looks especially attractive after the PlayStation Network fiasco that’s exposed PS3 owners’ personal info and payment information. Using PayPal means not having to enter your credit card information where it could be compromised by hackers and presumably also adds the benefit of that service’s security measures and fraud protection.

The Xbox spring update will also get consoles ready for the previously discussed, new Xbox Game Disc (XGD3) format, which enables more storage on DVDs and better copy protection. GamePro says to expect the dashboard update to start rolling out on May 19th. In a post-PSNgate world, it’ll be interesting to see if PayPal sees a spike in usage once the update’s live.