NXE, the Xbox 360 gained the ability to playback DivX formatted video but according to VP Jerome Vashist-Rota of the DivX Inc., his company isn't exactly happy with the route Microsoft took. Speaking with TechRadar the DivX VP of creative, brand and community praised the Xbox 360 for its DivX support but expressed frustration that the Xbox 360 uses third-party software and not the official codec provided by his company.
"It's all about branding," Rota said. "And branding can work both ways, so it is not just us losing out with the Xbox 360's lack of official certification." It doesn't seem to be a sticking point with consumers, or Microsoft for that matter, so only MS knows if changes are afoot. Currently, Sony has a partnership with DivX and uses the official codec for video support.