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Easy DivX to Xbox 360 Streaming with MCE Video Encoder

Until now, in order to play your DivX encoded copies of The Matrix on your Xbox360, you had to resort to a "hack", which was functional, but required you to be somewhat computer savvy to get it running.

ehomeupgrade.com David Walker

Context & Ripple Effects

When the Xbox 360 launched, playing DivX-encoded video on it meant resorting to a functional but fiddly hack that demanded real technical skill. MCE Video Encoder changes that calculus: it wraps DivX files into a stream the console accepts through Windows Media Center, no modding required.

The significance is distribution, not invention — DivX was already everywhere on PCs, and the encoder lowers the barrier so ordinary console owners, not just enthusiasts, can route their libraries to the living room.

First-order effects

  • Non-technical Xbox 360 owners gain DivX playback through Media Center encoding, retiring the earlier hack-based method that required computer savvy.
  • Microsoft gets a growing class of users running unofficial codec paths on hardware it controls, without having sanctioned them.

Second-order effects

  • Sustained demand routed through workarounds like this builds the case for Microsoft to add native DivX support to the dashboard rather than leave the gap to third-party tools.
  • DivX benefits from the detour: every console owner streaming its format is an argument for licensing it directly into consumer electronics.

Third-order effects

  • If consoles keep absorbing media playback roles, codec support becomes a competitive feature of game hardware, and third-party encoders occupy exactly the gaps vendors leave open until licensing deals close them.

The trend: Game consoles are turning into living-room media hubs, with codec gaps filled first by enthusiast tools and eventually by official support.