Details on this update were leaked a few weeks back, but today Major Nelson announced the update officially.
It appears the update will be spread out over the next weeks into different updates. Today's update will bring Paypal to most Xbox Users and a new feature called "Standby mode". If your console is idle for one hour it will go into auto standby mode saving power consumption. You can alter the settings in System Settings.
I'm not sure if it comes with todays update or one down the road, but a change to the Xbox 360's Disk Format will be coming allowing for more room on the disk and better security.
According to leaked details, Avatar Kinect will arrive May 27th.
The updates may take a few days from its launch to reach the entire globe. I would be willing to bet that everyone on XBL will receive today's update atleast by Sunday if don't receive it today.
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