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Xbox-Paypal Deal Makes More Trouble For PlayStation Network

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Xx305-_-NinjaxX

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Sony won’t be relaunching the PlayStation Store until next week, but it’s already running into trouble. First, its plans got leaked to the press, scuttling any chance of a stealth restart. But the big blow came when Microsoft’s Xbox announced a deal with PayPal giving consumers a proven, secure alternative to PSN.

Sony is hoping that this week’s return of PSN and next week’s restore of the store will let it put its massive security breach behind it. But flubs with the relaunch as well as a second round of hacking are making it difficult for consumers to forget last month’s theft of personal information for 100 million Sony users.

The Xbox software update is perfectly timed to make the most of that. Microsoft’s Larry Hryb, better known to gamers as Major Nelson, formally announced the update on his blog:

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 US and international Xbox LIVE users to make purchases on their Xbox 360 consoles with their PayPal accounts.

Users had been able to use PayPal before this but only to buy Xbox points — which could only be used for downloadable game add-ons. Under the new arrangement users will be able to buy everything — including games and subscriptions.

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