Along with the Xbox Originals program and increased social networking, the company promises "enhanced video codec support" for MPEG-4 Part 2. "Our users should find that most of their DivX and Xvid files will work because they're under that umbrella," Microsoft's Aaron Greenberg told Joystiq.

The company has provided a table specifying video formats supported by the Xbox 360. More technical details on video playback are available official blog of the Xbox development team, which also supplies complete details of the forthcoming update. It had been widely rumored that support for the DivX codec would be added to the system, especially since that functionality was recently confirmed for the PlayStation 3.

Another change is that Microsoft will permanently lower the price of several Xbox Live Arcade titles as part of its new Arcade Hits initiative. Included in the program are Marble Blast Ultra, Small Arms, and Zuma Deluxe, which previously sold for 800 Microsoft Points ($10) and will now sell for 400 Microsoft Points ($5).

Lumines Live!, which dropped in price a few months ago, and Bankshot Billiards 2 will be part of the Arcade Hits program at the 800 Microsoft Points ($10) level. Both debuted at 1200 Microsoft Points ($15).

Greenberg also confirmed that those who have made the transition from minor to adult since they registered their accounts will finally be recognized as adults, allowing them access to the full gamut of Xbox Live features.