May 19th 2011 2:30 am PT

New Xbox 360 System Update Brings Expanded PayPal Functionality

I am happy to announce that, as a part of a new Xbox 360 System Update, we’re expanding our integration with PayPal to allow U.S. and international Xbox LIVE users to make purchases on their Xbox 360 consoles with their PayPal accounts.* Once you’ve linked your PayPal account to your Xbox LIVE account on, you’ll be off and running to use it as a billing option, allowing you to buy content such as Microsoft Points, Xbox LIVE Gold subscriptions and Games on Demand titles.

We are rolling out the Xbox 360 System Update gradually to all Xbox LIVE users starting today and throughout the next couple weeks to ensure a high quality deployment. Just like any other update to our service, you will know you’ve received it when you turn on your Xbox 360 console, connect to Xbox LIVE and receive a notification to download the update. It’s important to note that it may take a few days to make its way around the globe. Thanks for your patience if you don’t get it right away!

This particular update will also bring an auto-standby feature that places your console on standby if it’s idle for more than one hour, helping to reduce power consumption. This feature will be available under Auto-Off in Console Settings after you download the update

Finally, thank you to all who participated in the preview program for this Xbox 360 System Update. Your contributions helped us prepare for the updated Xbox 360 disc format capability that comes with this release.

*PayPal functionality will not be available in the following Xbox LIVE regions: Brazil, Chile, Colombia, Czech Republic, Finland, Greece, Hungary, India, Japan, Russia, South Africa, South Korea, Taiwan

Edit: Updated to clarify the auto-standby feature

Xbox 360 By Larry Hryb, Xbox LIVE's Major Nelson

  • Ulises Jr.


  • Lucas Samuel

    Things always come to Brazil SO DAMN LATER. As ever… “PayPal is not yet available for your region…” Dang it.

  • Macleem Sports Wear

    this is excellent news

  • Duszan Dobrzelak

    just got it, but I’m curious what do they mean by “updated Xbox 360 disc format capability”…anyone know?

    • Eric Graves

      New disc formats are coming out, the new discs use more robust security encryption. This will make piracy some what more difficult, it caused a slight stir in the hacker community when it was first announced but I am not sure what the thoughts are now.

      It will not affect you. It does not make blu ray available (not even possible), or change the error correction capabilities to make the discs themselves more robust.

      • Duszan Dobrzelak

        Thanks for the explanation. And here I was hoping that maybe somehow it would make PAL games playable on US xbox’s and vice versa…*sigh*  a man can only dream…

    • Anonymous

      It’s not so much about security as it is the Xbox will handle bigger disc.  Kinda like Blu-Ray size.  Games like L.A Noire and Rage don’t have to be 3 discs.  Just one.

      • John Thomas Taylor

        This is not correct, the new format XGD3, just adds 1GB extra space.

      • John Thomas Taylor

        This is not correct, the new format XGD3, just adds 1GB extra space.

        • Anonymous

          Well maybe not that big. Just 1GB
          Yeah the above sentence was supposed to be posted a while ago, but when I went to reply to you it pops up. I don’t know. But yeah, it is just 1GB.

  • Hood Locsta

    how will u kno if u have it ..i didnt get it yet

    • Michael McAllister

      I haven’t got it yet either, but when you do receive the update, you will receive the typical message telling you that there is a new update available and declining to update will sign you out of Xbox LIVE.

      • Hood Locsta

        i know that part but im talkin about lets say i got it i didnt but lets just say what should i go to see if it on there. ( setting or what can u help me and what should i look for

        • Anonymous

          go to  console settings and then go to start up shut down and see if there is a inactive 1 hour shut down and a 6 hour inactive shutdown. If there is you got it or you can go to add ms points and see if theres a paypal option to purchacse points, if there is you got it

          • Hood Locsta

            thanx i got it thanx i just checked and it there thanx lmao i have to have my kids off my xbox lol

  • Giomal Diaz

    Whats up with the update, It stopes in the middle and says ” Can not download”

    • Jason Scarpelli

      Then something’s wrong with your x-box

  • Matthew Santamont

    Question: Now that the update is out, can I use the Halo Reach preview disc on other 360’s if I want to go to a friend’s house or something? I assume I could b/c the form said that using the disc on another console would shut it out of Live ‘until the update releases’ or something of the like. So I want to try it but don’t want to risk hurting the 360… help please? :/

    • Payne Lionheart

      No you cannot. The disc can only be used on the one Xbox you started it with.

  • Jason Scarpelli

    Just got the update. YAY! :)

  • Stuart Owen

    cool beans !

  • Evan Davis

    The update went through, but now all the Mass Effect 2 DLC is apparently gone :(

  • Kevin Figueroa

    When trying to add my PayPal account, I get this: The reward method you chose is not
    authorized. Please use another reward method to request your cashback reward. If
    you get this message multiple times, contact customer support.

    Message 8017

  • Manda

    Okay I got the update this morning and now for some reason I cant stay connected to live, Does the update have anything to with it?

  • Andy

    I’m irritated with this announcement, not because of anything it’s doing, but that I never received my Reach disk, as I am signed up for the beta and it even says so on my Live Dashboard. I have the channel and it says that I am a part of the DISC group, but I’ve not received my disc in the multiple months I’ve waited since signing up for the beta.

  • Lee Coursey

    @Andy, I’m with you, I never received my Reach Disc either, oh well I didn’t pay for it so no biggie I guess.

  • Brandon Dorbert

    I was one of the people who participated in the Beta. Nothing was wrong with beta update so I hope that not many people experience many problems with the official update

  • Anonymous

    Could you possibly elaborate on what the change in disc format means? Is it security related, storage space related or performance related?

  • Video

    Paypal r0x.

    Thank you to add this integration with xbox live

  • Charles Patterson

    This would have been awesome news if it allowed the purchase of content directly without buying ‘points’. I love Xbox Live. I seriously think it’s the best thing Microsft has done in years. But the points have to go. It really sucks to have to buy another block of points because I am 69pts short. This happened to me, and will continue to happen until I find a way to get 69 points.

  • Anonymous

    Never got this update yet? I was a beta tester

    • Anonymous

      I didnt get the update either. Still shows beta channel

    • Kyle Bundick

      This is because us beta testers are alrady on the correct dashboard. We wont be getting an update. The beta channel will be removed in the next few days.

  • Anonymous

    Hey i got the email about getting the avatar award for being a beta tester. Though i cant find this”Connect site” along with the left hand navigation, can some one help me out?

    • Gabriel House

      Go to Microsoft Connect website (Google … Bing it if you can’t remember the URL), sign in using your Windows Live info, go to the dashboard of the Connect website, find the Xbox Live Update program and click on it. Request new program, etc, etc.

  • Thomas Hunsaker

    Great news, no worriess from hackers now, pretty sure PayPal has great fraud detection. I expect Google Wallet in the next update. :) keep them coming xbox is only getting better.

  • Reynaldo Stephens

    I just got my avatar award! Thank you Xbox & Major Nelson for providing this beta program

  • Reynaldo Stephens

    I just got my avatar award! Thank you Xbox & Major Nelson for providing this beta program

  • Gavin Mannion

    No PayPal in South Africa even though we are an official PayPal area… well that sucks

  • Christopher Williams

    Good God…Microsoft partners with the Devil? Paypal is THE worst thing ever invented, horrible customer support, horrible fee’s, No Thanks guys.

  • Christopher Williams

    Hrm…First the beta program broke my dvd drive after inserting the beta disk, now the “Thanks” avatar award code is invalid. Geez……

  • Kait Roberts

    I don’t know if I should try getting my Avatar reward, as my Halo Reach beta disc never came. I’m sure Microsoft will laugh when I try to redeem my reward, too. :

  • Hood Locsta

    whan i Achievements and gamerscores and i awards are going to be posted up on i facebook  

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