Consumer site Joystiq claims to have accessed leaked documents saying that Microsoft will begin rolling out a spring firmware update for Xbox 360 next week.
Beginning May 19th, the company is apparently planning to send the update out in waves running until May 30th.
The update will provide compatibility for the recently revealed new disc format, that increases storage space by around 1GB – a move that's particularly useful for modern developers.
PayPal will also become a supported payment option.
And although not officially part of the firmware upgrade, chart service Avatar Kinect is also said to be launching as an optional download on May 27th.
Microsoft told the site that it has "nothing to announce" about the rumours.