Rumor: Xbox 360 May updates bring PayPal, Avatar Kinect

According to an email a Microsoft tech support employee sent to Joystiq, the Microsoft Spring 2011 Dashboard update will launch on May 19, adding PayPal support to the console's growing list of online features. PayPal support for Xbox Live was added (in the U.S.) a while back, but the Spring update will add it as a Dashboard feature.

While PayPal support is the only user-facing feature of the May 19 update, support is also being incorporated for Microsoft's new disc format, which greatly streamlines on-disc protection measures to free up about an extra gigabyte of usable space.

The email also revealed that Avatar Kinect support is coming via a separate download scheduled for May 27.