Report: Next 360 Dashboard update due on May 19, adds Paypal support

The next Xbox 360 system update will start rolling out on May 19 according to a Microsoft tech support employee who let slip an internal memo to Joystiq.

The update will be distributed in six separate groups between May 19-30 "to ensure a high quality deployment."

The latest dashboard update will bring with it support for a new disc format known as XGD3, an anti-piracy measure. It allows for additional storage space and further layers for copy protection.

Apart from that, the update will also enable expanded PayPal support on the console for new international markets, which will be the only "user-facing feature" of the update

The employee also provided them with another memo showing that Avatar Kinect - a free virtual chatroom unveiled at CES in January - will be released as a separate download on May 27.

Joystiq approached Microsoft for a comment, who snapped back with the usual, "We have nothing to announce."