"New Xbox Experience (NXE)"

• Completely redesigned user interface
• Party system for up to eight players
• Avatars
• Xbox Live Primetime
• Option to install games to hard drive in order to decrease load times
• Quick Launch for launching games on your console
• Netflix instant watching support
• 16:10 over VGA and HDMI, support for 1440x900 and 1680x1050 resolutions
• Access Xbox Live Marketplace on the web
• Redesigned Live Guide

• Mandatory update that prepares for future growth of the service.

• Mandatory update that prepares for future growth of the Xbox 360 console and/or Xbox Live.

• Support for DivX and Xvid video playback and AC3 audio.
• Xbox Live Arcade trial games are no longer written to Gamercard.
• Original Xbox games played now appear in the user's played games list.
• Parental Timer.
• Xbox Guide Opens Significantly faster.
• Inside Xbox news feed.
• Game gameplay fades out when console is turned off.
• Social Networking features.
• Redesigned user interface.
• Improved performance.
• The ability to view your friend's friends list (Friends of Friends).
• You can now put your name, city of residence and a biography under your gamertag.
• The marketplace has been redesigned and is now more organized.
• The user's downloaded videos are now organized by TV show and season.

• Prepares the system for communication with the upcoming release of the Xbox 360 Big Button Controller (bundled with Scene It? Lights, Camera, Action).

• Prepares the system for communication with the upcoming Guitar Hero III: Legends of Rock Les Paul wireless guitar controller.

• Added:
  • A separate, fifth blade for the Marketplace.
  • A more consistent interface for the Marketplace.
  • Windows Live Messenger integration with the Dashboard.
  • Switchable aspect ratio during video playback (Auto to Letterbox, Zoom, Stretch, Native).
  • Support for "Reference Levels" to video.
  • The information bar that turns on via the On-Screen Display (OSD) now shows exactly how much time has lapsed in the playback of the video file.
  • The ability to see the percentage of downloaded Video Marketplace content and where the ‘chapters’ exist for the said file.
  • Support for MPEG-4 videos.
  • Low-power background download function. The storage device, one core of the CPU, the fans, and any other components required for downloading remain powered, but rest of the system, such as the GPU and the disc drive, is shut off . System completely powers off once downloads are complete.
  • Download blocks to prevent a download from starting if it will not fit onto a storage device, without deducting any points associated with the content item.
  • Title of a game (when inserted into system) appears in the tray icon on the Dashboard menu. When highlighted, achievements and Gamerscore are displayed for that game based on the signed-in user.
  • More specific “Achievement Unlocked” message, detailing the achievement unlocked and how many points it is worth.
  • Windows Media protected content (WM-DRM), which can now be streamed from the PC to the console. If the WM-DRM license is missing or corrupted, then a specific error message is displayed to the user. Bookmarking is also stored for protected content.
  • Two new languages, n and Polish.
  • Option to boot straight into Media Center Extender mode (as well as changing the MC logo to the Vista version).
  • Option to automatically download all free Xbox Live Arcade games.

• Fixed a buffer overflow that allowed non-signed code (such as Linux) to run on the Xbox 360, with direct hardware access.

• Improved performance on wired headsets when used with a wireless controller.
• Video output issues on VGA connections fixed.

• Added:
  • Support for 1080p video output.
  • Support for Zune.
  • Support for the external HD DVD drive attachment.
  • Streaming of WMV files from a computer through the use of Windows Media Connect, connected USB device, CD or a DVD.
  • Windows Media Player 11 as a supported streaming program.
  • Audio and Video Streaming for Macintosh systems using Connect360.
  • Option for automatic downloading of trial versions of newly released titles in Xbox Live Arcade.
  • Cosmetic changes to the Dashboard.

• Added:
  • Option to resume DVD playback from where it was last stopped.
  • Option to boot to either a disc or the dashboard when system is turned on.
  • New slideshow options for Photo Viewing, which can save folder layouts between sessions.
  • Concurrent downloads, allowing multiple downloads as background tasks.
• Other:
  • Xbox Live Marketplace was reorganized.

• Prepares console for future system and title updates.

• Improvements to the Xbox Guide.
• Option to retain your saved games when you delete a profile.
• Increased accuracy of "last time played."
• Network configuration improvements for Xbox Live members in the Netherlands.
• More detailed messaging for unreadable disk or region errors.