Microsoft has announced all of the details on the upcoming Fall Update for the XBOX 360 that is set to go live at 2AM PST on Tuesday, December 4th.

Most everything on the list had been reported or rumored like downloadable original XBOX games and parental controls; however, this was the first official confirmation that I had seen of support for the DivX video format.

This is great news for anyone who likes to stream movies from their PC to their XBOX 360. I’ve been ripping DVDs to my media center PC and then converting the ripped DVD to MPEG-2 (since the XBOX 360 will only stream MPEG-2 video); however the resulting file sizes are 4.5-7GB per movie.

With DivX support, I can convert them using something like DivX Converter and the file size is only 1-2GB.

Since I also like to take movies on my laptop or other portable devices, this means I will only need to convert a DVD once rather than doing one conversion to MPEG-2 and another to DivX.

Look for a follow-up post next week once I am able to try it out.