Fear not, DivX and Xvid are supported
The dashboard update for Microsoft's Xbox 360 is imminent and many users are waiting patiently to play all their various DivX and Xvid files (downloaded legally we're sure) on a shiny big screen via the console.
Though often talked about, the full list of features implemented in the dashboard update barely mentions DivX and indeed makes no mention of Xvid at all, leaving plenty of us in need of more answers.
Kindly, the Xbox team has stepped forward on an official blog to give all the details on video playback we could ever need. Answering a whole 39 questions, the FAQ details exactly which filetypes it will be able to play and even takes the time to show a sample way of organising your video hierarchy in order to make it easy to navigate via your console.
The important thing is, the majority of your DivX and Xvid files should play without problem.
Further reading: The Xbox Team's December 2007 Video Playback FAQ