There will be yet another dashboard update on August 11th. If you are not illiterate you probably noticed that in the headline. The best feature in my opinion will be "Games on Demand". This will allow you to download full Xbox 360 titles directly to your HDD. 30 games will be available at launch including Mass Effect, Bioshock, Assassin's Creed, Lego Star Wars: The Complete Saga and Sonic the Hedgehog. If you haven't already upgraded to the 120GB HDD, and you intend on using the service, now would be the time.
Group-based Netflix streaming has also been confirmed for this update, for the real MST3K experience, which is good considering this feature was supposed to launch with the NXE initially. Also, you will be able to update your queue from the 360 without the need for a PC.
There will also be Avatar clothing and accessories available for sale on the marketplace. Yes! You will now be able to waste your money on clothing. I am oh so excited. Though I do know a few douche-bags who will probably invest in HALO apparel. In fact, I wouldn't be a bit surprised to find half my friends Avatars looking identical to one another.
This is the first step in all the updates announced at E3 with Twitter, Facebook and Last.fm coming this fall to Xbox360 along with full 1080p streaming video on the marketplace.
As with every update it brings with it the possibility of bricking your system, so be careful out there and use protection. If you do get the RRoD, some possible fixes can be found HERE.
EDIT: Joystiq lists all the new features HERE.
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