It’s true, it’s true! Xbox Live’s Major Nelson has confirmed that the new Xbox 360 dashboard update will indeed offer PayPal as an alternate payment method. Case closed. It’s being rolled out over the next few weeks, starting today.
United States and certain international Xbox Live users can link their PayPal account on Xbox.com, and this billing option will be applicable to seemingly all types of Marketplace content. Surprised to see it took so long for it to happen.
The update also throws in an auto-standby feature which activates once your console has been idle for more than an hour. If you hate saving energy, though, you can disable this functionality.