The much awaited Xbox 360’s LIVE Dashboard update has finally arrived. With this update, you can download full Xbox 360® games and play them without a disc, and you and your friends will be able to party watch movies online through Netflix! Dress up your avatar to impress with premium props and branded apparel from fashion labels. And this update allows every piece of game content on Marketplace to be rated, so add your personal ratings and see what others think is cool. But that’s just the beginning. Check out all of the new features of the Xbox LIVE Update below.

1) Games on demand: Enjoy the convenience of finding and buying new games right from the comfort of your own living room.

2) Netflix :  Now you can watch movies with your friends and find new movies to add to your Instant Queue without leaving your seat.

More about Netflix, This is a partnership which offers you the ability to instantly stream movies and TV episodes from Netflix to the television via Xbox 360. The Xbox 360 offers a unique movie-watching experience, available to Xbox LIVE Gold members who are also Netflix unlimited plan subscribers, at no additional cost.

From the Netflix Web site, simply add movies and TV episodes to your instant Queue, which will appear automatically on the TV screen via Xbox 360. Once selected, movies will begin playing in as little as 30 seconds. In addition to instantly streaming Netflix movies to the TV, Xbox LIVE Gold members can browse and rate movies, fast-forward, pause and rewind, all using either their Xbox 360 Controller or Universal remote.

There are many more features like Parties, Avatars, Account Management etc. Click here to take a look at complete list of features with details.

Stay tuned for more.