The Xbox 360’s next Xbox Live update is coming on August 11. Microsoft confirmed today the launch of the new Xbox Live Games On Demand service, which will launch with more than 30 games. Some examples include Assassin’s Creed, BioShock, Lego Star Wars: The Complete Saga, Mass Effect, and Sonic The Hedgehog.

The 11th also brings the introduction of Netflix party support, which allows multiple people to watch Netflix movies together. Also, the Avatar marketplace will launch, offering virtual versions of things like an RC Warthog from Halo.

Here’s some more Microsoft news, in a day filled with Microsoft news. How does full Xbox Live games on demand sound? Awesome? I know. You, and me, can now download Mass Effect, Bioshock and others. And you can do so like a big boy, using a real credit card, not Xbox Live points. They will be coming in August.

It would be great if you could get every game, but sadly you can’t. It’s a mix of third-party stuff like Sonic, call of Duty 2, Crackdown, Bioshock Mass Effect and others. Whether games will be downloadable the day they’re released to retail is unclear. Also don’t expect to use your credit card direct just yet: “We’re not getting rid of the point system.”

At E3 today the big M announced a bunch of upgrades to Xbox Live. The biggest news is the relaunch of the video service, now Zune-branded with 1080p instant-on streaming content in 18 countries. XBL will also now integrate with Facebook, which is great news for all of you social butterflies out there. Your Facebook account can be linked to your Gamertag, and games will support Facebook Connect for sharing online content.

That’s not all. You’ll also be getting Twitter and Last.fm. Yes, these updates are huge. There’s more. Netflix users will now be able to browse the entire catalog instead of just loading their queue, and since Microsoft has gotten its Party Watch system down, you’ll be able to diss videos with your online friends.

Almost true to rumors, along with the press release from Microsoft late Tuesday about the new Zune HD release, the company announced they will be extending the Zune video service into Xbox LIVE this fall as well.

“The Zune music player is an integral part of the overall Zune experience, and we’re proud to be growing and extending our offering beyond the device,” said Enrique Rodriguez in the Microsoft press release on Tuesday. Rodriguez is the corporate vice president of the Microsoft TV, Video and Music Business Group.

Sure, Amazon makes most of it’s hard earned dough by selling and shipping physical items, but they don’t need a crystal ball to know that digital content is the future and they are positioning themselves accordingly. The company is expanding its downloadable video game catalog to include Xbox Live Arcade games today.

The process will no doubt be streamlined in the days to come, but for the moment you buy a code from Amazon that you have to enter into your Xbox. Amazon charges you real money instead of Xbox Live points. The service is live now if you want to take a gander. Does that make the digital content taxable? So many questions. Might as well just get shopping.

Yep, you read that right! Microsoft’s Xbox Live Gold subscription, which normally costs you $50 annually, is being sold by Amazon right now for $29.97. We have no idea what it means, but a similar discount was apparently happening at Buy.com last week. Could it mean that Microsoft might be moving toward a lower price for the subscription?

We have no idea. Who cares about “why” or “how”, we just think it’s awesome. Any 40% markdown that leaves us some extra cash for games is fine by us.

Microsoft today dropped the rest of the details on its upcoming Xbox 360 2007 Fall Dashboard Update. This includes the previously covered Xbox Originals download service. You can expect this update to populate your video game console sometime starting Dec. 4.

The Xbox 360 2007 Fall Dashboard Update is definitely a major overhaul with lots of new features. Besides the ability to download and play Xbox Originals you also get access to reduced prices on select Xbox Live Arcade titles. There will also be a new direct feed into the dashboard which gives you more updated information on new Xbox offerings. You’ll also be able to add more information into your bio for friends to view as well as being able to see the Friends Lists of other Xbox Live members.

Can you believe Xbox Live, the online arm of Microsoft’s Xbox 360 video game console, turns five tomorrow? Neither can we. That being said, this is a shining example of an area where Microsoft held on to become a dominant force in a vertical category. To celebrate this crowning moment several announcements were made which should make things even more interesting.

For starters, Microsoft is giving away for free between 12:01 a.m. PST on Nov. 15 and 11:59 p.m. PST on Nov. 16 an Xbox Live Arcade game for download. Of even bigger interest to gamers, particularly fans of the original Xbox, is word of a free system update which will offer, among other enhancements, the ability to purchase and download original Xbox games. These Xbox Originals look to initially include Halo,” “Psychonauts,” “Crimson Skies: High Road to Revenge” and “Fable,” among others.

Until recently Xbox 360 owners were able to download a firmware hack which allowed them to play backed-up games and essentially boot-legged copies of games on their game console. They were also able to participate with them on Xbox Live seemingly without any notice from Microsoft, but that appears to have changed.

Apparently with the recent Spring Update earlier this month and coinciding with the beta release of Halo 3, Microsoft has shown that they are able to detect and ban those consoles with modified firmware. When consoles with the modified firmware is detected users will receive an error code (Status Code: Z: 8015 - 190D). As a result, Microsoft is permanently banning modified console from the Xbox Live service, but they are not banning the individual user account. When trying to connect through the modified …

Microsoft has released the Spring Update for the Xbox 360 which is now available for 360 owners to download through their console. The Spring Update promises to increases communications through integrating with Windows Live Messenger and cut down on downloads that are not intended for your geographical area.

With the Messenger compatibility, Xbox 360 owners will be able to add up to 600 Messenger contacts to their Live account in addition to the 100 gamertag contacts. Up to 20 contacts can be on the same conversation and as many as six conversations can be held at one time.

Some other features in the updated dashboard include achievement pop-ups that contain more details such as showing what the achievement was and it’s value right in the pop-up. Microsoft has improved on providing downloadable content, including the ability to watch …