XBOX-HQ.COM - Xbox 360 DivX/XviD Playback Test (Verdict: Almost Perfect)

The Xbox 360 supports DivX and XviD as of today, which may make some of you with big file collections (like us) as giddy as a kid in store with puppies made of candy. We threw our entire collection of movies, TV shows and random clips at it and found that the 360 can play back pretty much anything. Here are some notes.

You can play files off of a CD/DVD. This feature wasn't listed on the Xbox Team's website as one of the supported locations for playing back content, but this is fantastic for homes that have wireless networks (or no network at all). In fact, reading off a disc is probably the best way to ensure your movie won't cut out in the middle due to network congestion (unlikely) or someone turning off the computer accidentally (fairly likely).

It supports almost all files. It played back all TV shows we threw at it, including My Name is Earl, 30 Rock, It's Always Sunny in Philadelphia, Battlestar Galactica, and The Venture Bros.. Most of these, and most TV downloaded TV shows, are encoded in XviD format. As for DivX, that's supported back to version 5.0, but it's unlikely that you're going to find any DivX 3 or DivX 4 online, unless you're talking about old files you've saved for a couple years.

News-Source: gizmodo