Wow, some thought it would never happen but it shows what a bit of competition from the PS3 can do.
It has been announced today that Microsoft will be releasing MPEG-4 Part 2 video codec support as used in the popular DivX and Xvid codecs.
In simple terms this should allow you to play videos with an .avi extension, as long as they have been encoded in either the simple or enhanced simple profile.
These formats are popular on the internet as they maintain a good quality image whilst keeping the file size to a managable size.
This has been reported officially today by Microsoft and will be included in their Fall Update which will be released on December 4. I'll test and update you all then!
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