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Xbox 360 devices will receive system update notifications from today. This new update brings some new functionality that will improve the experience for the users. From Major Nelson’s blog on what’s coming to this update,
I am happy to announce that, as a part of a new Xbox 360 System Update, we’re expanding our integration with PayPal to allow U.S. and international Xbox LIVE users to make purchases on their Xbox 360 consoles with their PayPal accounts.* Once you’ve linked your PayPal account to your Xbox LIVE account on Xbox.com, you’ll be off and running to use it as a billing option, allowing you to buy content such as Microsoft Points, Xbox LIVE Gold subscriptions and Games on Demand titles.
This particular update will also bring an auto-standby feature that places your console on standby if it’s idle for more than one hour, helping to reduce power consumption. This feature will be automatically enabled after you download the update. You can change this setting in the System Settings on your console.
The update will be be rolled out gradually from today in phases and it may take a few days to make its way to your console.