The update also adds a new Avatar Marketplace that will offer props for Avatars and the ability to download and purchase premium items like clothing for the player's avatar. The slick Netflix streaming service is also getting an update that adds new features like Party Watch that lets users watch a show with friends at the same time if the movie is supported. Content search is improved in the update and the playback experience is reportedly improved as well.

One key announcement that Microsoft has made in conjunction with details on the new Live Update is to reveal that the Xbox 360 will be the only game console that is able to stream Netflix content. Microsoft has announced that it has an exclusive partnership with Netflix. That means owners of the Wii and PS3 waiting to join the Netflix streaming service are out of luck.

Account management features will be updated to prompt subscribers to renew their Windows Live IDs and subscriptions when they expire. Gold member Veterans will also get a special card and may get other unnamed perks as well.

The update adds various fixes to the console's video display options to make viewing content in the highest supported resolution easier to do. User ratings are being tightly integrated into XBOX Live allowing users to rate content on the Marketplace with a 5-star system and games and other content will be sortable by these ratings.

Various improvements are being made with the UI with the dashboard being reorganized to make finding things easier. Xbox Live Community Games has been renamed Xbox Live Indie Games, and achievement tracking and an achievement browser is available as well. Microsoft says that ore features are coming this fall with integration of Facebook, Twitter, Last.fm, and Zune Video in the Xbox Live features.