The rumours are true - Xbox 360 owners will soon be able to watch their library of DivX and Xvid files via their Xbox 360 console from today.

The Xbox 360 dashboard update has left many owners baffled as to what files the console is compatible with.

However, on the official Xbox blog, and further confirmation from a Microsoft spokesperson to Pocket-lint, the Microsoft team has detailed exactly which file types the Xbox 360 can play, and given a lot more details besides.

In fact, the Q&A session covers 39 topics including how to organise your videos to make them easiest to navigate through using the Xbox 360 console, shortcuts using the gaming console pad; how to determine whether your video file can be played using a third party analysing tool (interestingly, this does not include files older than DivX 5.0.); and how the five Xbox 360 display modes work.

The blog also details what restrictions Xbox owners may face, including, unsurprisingly, the fact that you cannot play videos from an iPod.

But, most important, are the instructions on how to play your clips – happy viewing...