Latest Xbox Live update features games on demand, Netflix upgrades

Several much-awaited updates to Microsoft’s Xbox Live go into effect today (August 11, 2009). The Games on Demand service allows for the purchase of full Xbox 360 games (either by credit card or with Microsoft Points) from the Xbox Live Marketplace and those titles will be available starting August 13, 2009. More titles will be added every Tuesday.

Don’t worry about space issues, as your Xbox Live account tracks your purchase history. So if you have to delete a game, you can re-download it later and not have to pay for it again.

Netflix is mixing in some upgrades as well, allowing you to add movies to your queue from your console. Previously you could only manage your Netflix queue on your home computer. Xbox Live parties aren’t just for gaming anymore as now you and your friends can have parties for TV shows and movies you’re watching on Netflix. Members can rate and review movies too. And as an upgrade for all parties, if a member of your party is accidentally disconnected they will now get re-added automatically.

The dashboard has also been streamlined to make it easier to track your achievements, recover your gamertag and sign in. The Avatar Marketplace will allow us to see exactly what gimmicks gamers will pay for. Your avatar can play with props and wear designer clothes. Since avatar clothes have all been free up until now, I’m curious to see how many people will pony up Microsoft points so their virtual selves can be clotheshorses.

I think my favorite update is an actual warning when your Xbox Live membership is about to expire. Previously you just got bumped back down to Silver instantly, even while you are playing (including between Gears of War multiplayer matches). Good to know that’s getting fixed. Future Xbox updates will include Facebook, Twitter and Last.fm.

Read [Gamertell] Also Read [Team Xbox]