At a conference a DivX official let it slip in a Q&A session that sometime in the future we could be seeing DivX compatibility with the Xbox 360. Here’s the official transcript of what was said (Kevin Hell is the DivX official, Paul Coster is an analyst for JP Morgan):

Coster – “Just a minor point here, but there was a recent Microsoft (MSFT) conference where I believe their media extender now incorporates the DivX codec on it, is that correct? Can you confirm that and does that mean we’re soon going to see Xboxes with DivX on them?
Hell – “Yes! that, uh, we’re in discussions with Microsoft on that at this point in time, so I can’t go into any great detail on that. Um that is not a certified, that is not a certified or licensed product at this time.”

At this point Dan Halvorson the CFO of DivX jumped in and changed the subject. Not the most conclusive information as they only said that they’re in talks about it but it seems like something that would fit in with the Xbox Media Center upgrades.