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In their pre-E3 media briefing on Monday, Microsoft spoke about redefining the Live service and indeed their entire console "through software". Specifically, a radical reshaping of Live - taking into account the vast quantities of content now available on there - and inevitably, the posturing of their competition.

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Mark Whitten, Xbox Live general manager, took us around the enhanced and dramatically altered new Xbox Live at E3 yesterday; giving us a first glimpse of how the service will function from this autumn.

Whitten candidly admitted that Microsoft "underestimated the Marketplace", stating that digital distribution has taken off in way they could never have predicted. Originally, Redmond apparently thought Live would only carry 100 to 150 pieces of downloadable content at a time. The new look, clearly influenced by Apple's user-interfaces such as iTunes, will better organise the thousands of downloadables now offered - making it easier to find individual items, as well as surf what's on offer.

With the number of Live users now topping the 12 million mark, Whitten told us that the future of Live is all about "community building", adding when questioned that the changes being ushered in this winter will be just the start of major enhancements. This is merely the groundwork for future functionality.

Part of this is the Live Party system, linked to the new Avatars, which will allow eight friends to create a kind of social club. Technical limitations prevent MS from increasing the size of this network at present, however you will cleverly be able to move as a group "through your online experience", playing games, watching movies or TV, taking quizzes or just chatting.

Avatars are of course designed to rival Nintendo's Miis, and will no doubt have been created with an eye on the PSN's Home as well. That said, Microsoft are promising unique customisation features, albeit ones they're not elaborating on at present.

Live Primetime also takes the 360's online service deeper into mainstream, casual territory, offering up Endemol's 1 vs. 100 quiz, complete with real-world prizes, not to mention all manner of locally-targeted quizzes and much much more.

Taking off on something of a tangent for a moment, the update will also allow players to copy whole games to the Xbox 360's HDD, which we're told will make loading 30% faster, although you will of course need the original game disc to start-up. The game store is also set for a revamp, taking on the aforementioned iTunes-esque structure and style (complete with reflective box shots), while MS will even allow you to make Store purchases on a PC. This will mean that if you leave your console switched on and connected while out of the house, you can use another machine to make purchases via Xbox.com; your console then automatically downloads your acquisition(s). This will cover games, movies, DLC and more.

Those of you who like the present blade-based Live menu structure will be pleased to know that this persists in some form via a 'mini guide' of sorts, which you'll be able to pull up whenever you want to quickly access key areas of Live. Whitten, however, is quick to point out the esential nature of the changes being ushered in; with Live's present user interface simply not making the most of the content available, omitting several much called-for features.

All in all, we're more than a little intrigued by the impact these enhancements will make, Microsoft's singing and dancing clearly hinting at a fairly whole-scale revision of the service. What we're after now is more news on Avatars, and hints at where the platform holder will be taking the social side of things next. Stay-tuned.

1. When is this update due by the way?

   Thomas Ryan Thursday, 17 July 2008, 00:26:5

2. Microsoft needs to start updating the australian xbox live it hasnt been updated for along time i went on the american one it has so much good stuff like south park themes and pics ex

   Ryan the aussie Thursday, 17 July 2008, 09:58:37

3. This Fall, it's the Fall Update.

   Also this is not the new xbox live. this is the new xbox. So the UI on the main menu not just Xbox Live will be updated.

   No One Thursday, 17 July 2008, 23:03:52

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   blackusafree Saturday, 26 July 2008, 13:20:0

5. ibm red minor joke global

   kitchenjhonw Saturday, 26 July 2008, 19:24:6

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   appleugly Sunday, 27 July 2008, 09:37:52

7. I once read that we would be able to download and watch tv shows on Xbox Live. Whatever happened to that idea? Hwen I got an Xbox a few weeks ago I was pretty dissapointed with the poor layout and high cost of content, which I would have thought would be a little cheaper as I'd got a Gold Xbox Live membership. Maybe Microsoft should listen to their customers rather than follow suit from the charts and other companies.

   Benjamin Goddard (Crawley, South East England) Sunday, 3 August 2008, 19:42:49