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Microsoft Hooks Up With PayPal For Xbox Live Payments

Xbox users who have installed the latest firmware update for their games consoles will be aware that they now have access to the new XG3D disk format, which boosts the capacity of game disk by an extra gigabyte, bit a couple of added extras have also snuck in under the radar.

Most punters won't be overly excited about the function which shuts the console down after an hour of inactivity, but the ability to pay for Xbox Live content using a PayPal account could be of interest, according to thinq_

"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," Microsoft's Larry 'Major Nelson' Hryb explained today, "allowing you to buy content such as Microsoft Points, Xbox Live Gold subscriptions and Games on Demand titles."

There's no way to link the accounts directly through the console's connection so you'll need access to a PC, and gamers in Brazil, Chile, Colombia, Czech Republic, Finland, Greece, Hungary, India, Japan, Russia, South Africa, South Korea, and Taiwan will have to resort to the traditional pre-paid scratch card or credit card methods, but it's a step in the right direction.