While it's not as radical a change as the fall 2008 dashboard update that added avatars and Netflix streaming, there are a lot of improvements to current features, as well as a few new ones. The dashboard update will be available for 360 owners on August 11th, but we were able to download an early version for a test drive.
Included were notable features such as the Avatar Marketplace, for buying (via Microsoft Point micro-transaction) clothing and accessories for your avatar, and the Netflix Party Mode, for watching a streaming Netflix movie along with online friends.
Missing from our early download, however, were the much-anticipated Twitter and Facebook apps, as well as the Games on Demand service for Xbox 360 games. Currently only older original Xbox games are available (also not available -- any of these).
Click through to the gallery below for our walkthrough of some of the new Xbox 360 dashboard features.