Starting on May 19, Xbox LIVE will begin releasing the new Spring 2011 System Update which will expand Paypal to new international markets and enable Paypal to be used as a payment instrument for points, content, and subscription purchase on the Xbox 360 console. This is the only user facing feature of this update.
The update will be distributed in six separate waves between May 19 and May 30 "to ensure a high quality deployment." Additionally, while not technically part of the automatic update, Avatar Kinect is listed for a May 27 arrival as a separate download.
This release will also introduce support for a Xbox Game Disc Format (XGD3) that will be used in future game titles releasing later in 2011. XGD3 allows for additional storage space on a game disc, and provides additional layers of copy protection.