According to Joystiq, an alleged leak within Microsoft has detailed the Xbox 360 system update due to roll out this month.

The update is rumoured to add compatibility for a new disc format known as XGD3, which will be utilised in future titles releasing later in 2011 and will offer around a 15 percent increase in storage over the current format while boasting additional privacy prevention measures. The update will also include Avatar Kinect, a free virtual chat room, as well as better PayPal support for international markets.

The Spring 2011 System Update will roll out in six groups between May 19th and May 30th, "to ensure a high quality deployment".