Earlier this week, Microsoft released a free Xbox 360 "holiday theme" meant to celebrate the festive time of year. Now, the company has taken things one terrifying step further.

An Xbox Live Holiday Snow Globe is currently available within the Xbox 360's Spotlight channel, allowing Xbox Live-connected gamers to toss the avatars of their online pals about with a mere press of the A button.

For another random selection of all-too-eager victims, just hit X. Happy holidays!

Sales of downloadable Xbox Live Arcade games "almost tripled" in the week after the November 19th launch of the Xbox 360's new interface, Microsoft has announced.

In particular, Cabonated Games' UNO saw a 650% sales jump in just one day, a feat attributed to the fact that it was updated with support for the new customizable player avatars. NinjaBee's A Kingdom for Keflings, an avatar-utilizing game launched on November 19, "registered the second-best first week of performance ever."

In addition, Xbox Live members have added an average of 33% more friends since the New Xbox Experience hit, Xbox Live programming director Larry "Major Nelson" Hryb observed on his blog, though no explanation or hard numbers were given.

Narrowly meeting its promise of new parts "every two weeks", Microsoft has released some new winter-themed clothing and accessories for the Xbox 360's player avatars.

The free items, including a coat and winter hat, are automatically unlocked after signing into Xbox Live. New selections are designated by a yellow star in the Avatar Creator Tool.

It's the first clothing update for the customizable avatars, which arrived as part of the New Xbox Experience on November 19. Microsoft has stated plans to release new items across the next six months, though it's not known if all the parts will be free.

An avatar parts store is slated to eventually hit the Xbox Live Marketplace, and will sell various avatar-related items at unknown prices. In addition, future Xbox 360 games may provide new game-specific avatar parts by earning and unlocking achievements.

The launch of the New Xbox Experience brought more than just a new interface and a few temporary Xbox Live issues. Since the new Xbox 360 dashboard hit on November 19, some HDMI-connected owners have literally been playing their games in silence.

The problem appears to afflict a select group of devices that properly handled Xbox 360 audio prior to the New Xbox Experience, such as the BenQ G2400W monitor. It is believed that the issue stems from an updated HDCP handshake--the protocol used to establish an HDMI connection--which the older devices are not compatible with.

Now, Microsoft has acknowledged the issue in a statement to Shacknews, apologizing for the "inconvenience" and noting that a fix is in the works. Said Microsoft:

While the vast majority of our users worldwide are enjoying the New Xbox Experience with no problems, we are aware that a... Read more

A week after they were removed, select films from Sony subsidiary Columbia Pictures are now once again viewable through the Xbox 360's streaming Netflix service.

"Almost everything, from Ghostbusters to The Karate Kid in your Netflix Instant Queue can now be streamed to the 360," reports Joystiq. Some notable movies, such as Superbad and Spider-Man 3, are still blocked from Xbox 360 streaming.

Last week, Netflix claimed that the blockage of these films was a license issue. However, the company later issued an updated statement on its blog, noting that the "temporary [Xbox 360-only] unavailability" was "not necessarily a license issue."

Microsoft has taken notice of problems that came with yesterday's launch of the New Xbox Experience, and the Xbox team's Larry Hryb has stepped in to keep gamers abreast of Microsoft's work to resolve the issues.

"We are aware some of you may be experiencing a few hiccups along the way," wrote Hryb, better known as Major Nelson, on his blog.

Yesterday's Netflix snags have been fixed, as have some problems with the Xbox Live Marketplace. The Shack staff has found that most console functions work smoothly and has also observed that the Marketplace performs well on the console, but the new web storefront has shown difficulty with making some purchases.

The web-based Marketplace issues are known to Microsoft and are being worked on. "The Live team is closely monitoring the Live service and Xbox.com," wrote Hryb. He added, "The team is actively working on the issues, so thanks for bearing with us."

The New Xbox Experience's ability to load games from the hard drive is intended to help games load more quickly or even make them look better, but Bungie's Halo 3 is an exception--it actually loads more slowly than without installing the game.

To explain the phenomenon, Bungie tapped engineer and "Chief Caching Officer" Mat Noguchi to give both a technical explanation and the "short answer." The short answer is in essence that the game has always used the Xbox 360's hard drive to shorten load times:

The Xbox 360 HDD has a section for games to use called the utility partition. Games can use this section for whatever they want to; Halo 3 uses the utility partition to cache maps as they will load faster off the HDD ... Think of it as an on demand install of Halo 3 to some scratch space on the HDD.

Asked whether Halo 3 would receive an update to take advantage of the new system feature, Noguchi all but shot down the idea. "It would be a significant undertaking" to do it, wrote the engineer, adding that it would be too great a risk for too little a reward especially in light of the studio's work on Halo 3: Recon.

Noguchi's highly technical account is reproduced in full below... Read more

Now that the New Xbox Experience is here, and has blown our minds with its transplendent introduction film (I hear there are also some new features), the software side of the Xbox 360 has never looked better. But this free upgrade also presents a question of whether to boost the box itself.

As it happened, I was the last to learn that I needed a new Xbox 360 hard drive. I mean, my current hard drive works fine. Sure, it's only a measly 20GB in size, but that's enough for some Police DLC, and a few episodes of the Batman Animated Series. What more does a gamer really need?

Turns out he needs a lot more, according to my colleagues, who all seem to have migrated to bankrupt electronics retailer Circuit City today like a flock of consumerist birds, in search of a $100 deal on a 120GB drive. And now they're flocking this way, attacking my easily-swayed videogame libido.

I need that 120GB. I need to spend that $100+. Why? To install games, of course.

PC gamers are chortling away right now. ... Read more

With Xbox 360 owners around the world rushing to utilize the new features and interface of the New Xbox Experience, a few launch day issues have cropped up.

Access to the Xbox Live Marketplace, from either the console or the newly-launched web store, is currently sporadic, preventing access to downloads like add-on game content, demos, Xbox Live Arcade games and the new Community Games.

We have also received multiple reports that users are having issues tying their Netflix accounts to the console for streaming movie access, specifying that the Netflix Activate Page is currently rejecting any of the Xbox 360-supplied activation codes.

However, not everyone is having Netflix woes. As of 12:55 PM CST, Shacknews' Steve Gibson was able to activate Netflix "without a problem."

Shacknews has contacted Microsoft for more information, and will update accordingly.

Update: The Netflix issues have been resolved, according to a Microsoft-sanctioned blog post from Xbox Live programming director Larry "Major Nelson" Hryb.

Following today's launch of the New Xbox Experience, Microsoft has promised that it will soon double the "fashion selection" choices for the new customizable player avatars.

"Come back every two weeks to check out new items. We'll be doubling our fashion selection over the next few months," reads an Xbox Live advertisement that was found and photographed by Xbox 360 Fanboy.

The ad notes that new parts will be marked with a yellow star in the Avatar Creator Tool, suggesting they may be automatically rolled out for free.

"We're going to be continually releasing and unlocking clothes for the next six months," Xbox Live product manager Jerry Johnson informed videogaming247, though he did not specify if the content will be free or paid. "They'll be coming out in theme packs."

An Xbox Live avatar store is slated to debut by next spring, where Xbox 360 owners will be able to purchase new items for their Avatars. In addition, Microsoft is planning unlockable avatar items based on in-game achievements.

Update: Netflix has confirmed the loss of Xbox 360 owners' ability to stream movies from Columbia Pictures, a Sony subsidiary. Columbia's movies are not licensed to be streamed to 360 consoles.

"In the case of Xbox 360, a few hundred titles are temporarily unavailable to be streamed via the Xbox game console," wrote Netflix VP Steve Swasey to MTV Multiplayer. "We hope they'll be licensed for Xbox 360 shortly," he added.

Original Story: Those anxious to try out Netflix movie streaming in the New Xbox Experience have just hit a stumbling block: a preview user has reported that streaming movies from Sony subsidiary Columbia Pictures are not playable on the Xbox 360.

A Joystiq reader noticed that their Instant Queue--the web-based list required to watch Netflix movies on the 360--suddenly included a slew of titles... Read more

Come November 19, a New Xbox Experience will dawn for Xbox 360 owners.

More than just a simple dashboard update, the free download brings an entirely new look and feel to the system's interface, adding a number of new features in the process.

After using the NXE for over a week now, I can confidently state it's an improvement, even though I never had a problem with the old interface. I have a few quibbles, but for the most part, I really like it. Heck, I even like my Avatar and his slick aviator sunglasses.

Interface
The most obvious change is the new interface, which replaces the old 2D blades with a slick 3D aesthetic that is much smoother and user friendly.

Simply tap up or down to move from category to category--through the Game Marketplace, My Xbox, Friends list, etc. Scrolling through the various options is accomplished by simply hitting left or right.

For those that prefer the old interface, don't fret too much. Tapping the Guide button of the controller brings up a miniature set of blades that offers quick access to everything the system has to offer, including a classic-style list of online Friends... Read more

After downloading and installing the New Xbox Experience this Wednesday, Xbox 360 owners will be introduced to the system's new interface and features with the following video, which can be (optionally) viewed time and time again through the system menu.

Please install Flash to view this Shackvideo

Shackvideo users can use the HD Stream.

Come next Wednesday, November 19, Xbox 360 users around the globe will be greeted with the New Xbox Experience, which packs a new interface, new functionality, and those customizable player avatars.

One of those new functions is the ability to stream videos from online rent center Netflix, which has been my most-anticipated feature. I even subscribed to Netflix because of it. But now that I've had the chance to mess around with the Xbox 360's Netflix streaming in the comfort of my home, I have to admit I'm a little disappointed.

Don't get me wrong, the streaming works well. The quality is great, at least on my connection, and it tracks when you pause or stop a video so that you can restart from that point later on, even if you back out of the application. I even watched an episode of Friday Night Lights in high-def--one of the few HD videos currently available.

But while over 12,000 videos are promised, it's only possible to watch those in your Instant Queue--the list of movies and shows you maintain on Netflix.com... Read more

Microsoft has released a new party-centric preview for the New Xbox Experience, the dashboard overhaul for the Xbox 360.

Like the party feature in popular multiplayer games like Halo 3, which allows players to stay together across multiple rounds and different game modes, the upgraded Xbox 360 system software will extend that concept to the entire system, allowing friends to stay connected across different games and join together more easily.

To illustrate the idea, Microsoft has released a video featuring Larry "Major Nelson" Hryb, an Xbox Live spokesman-like figure. The party feature joins Netflix streaming, customizable player Avatars, support for optional game installs, and more when the New Xbox Experience launches on November 19.

Please install Flash to view this Shackvideo

Shackvideo users can use the HD Stream.

Scene It? Box Office Smash won't be the only Xbox 360 game to support the new Xbox Avatars on November 19, as Microsoft has revealed that the following downloadable games will be updated that day with Avatar support:

• UNO
• Bomberman Live
• Hardwood Hearts
• Hardwood Spades

In addition, an as-yet-untitled Xbox Live Arcade game will launch with full Avatar implementation--NinjaBee's Kingdom for Kelflings, according to Shacker Carnivac.

Customizable Avatars are part of the New Xbox Experience, a free update that brings new features such as a new interface, optional game installs and Netflix streaming to the Xbox 360 on November 19.

Installing games to the Xbox 360 hard drive may do more than just reduce load times. According to Variety's Ben Fritz, it made Lionhead's Fable 2 look prettier:

Fable 2 looks noticeably better. The graphics are sharper and brighter. So much so that it's like the game, or my graphics processor, has gotten an upgrade.

Optional game installation is one of the many features packed in the New Xbox Experience, a free software update coming November 19, though it still requires the game disc to be present in the system. A public test of the update is underway.

Shacknews has contacted Microsoft for more information on the matter.

Come November 19, Xbox 360 users will be able to access more than Netflix's standard array of 12,000 low-def streaming videos. On that day, Netflix will premiere its long-awaited HD streaming video service, with Xbox 360 owners getting first dibs.

Engadget recently previewed Netflix's HD streaming with an episode of NBC's Heroes, reporting that "the quality was stunning." Roughly 300 HD videos will be available when the services launches, with Xbox 360 owners required to have an Xbox Live Gold account and Netflix subscription in order to access the content.

Netflix has yet to state when it will roll the streaming HD offerings into its other distribution avenues, such as the "Watch Instantly" portion of its own website.

To learn more the freesoftware update that's bringing Netflix streaming to the Xbox 360, check out our previous coverages and screenshots of the Netflix area.

Microsoft has plans to open an online store next spring that will allow gamers to purchase clothing for their Xbox Live avatars, according to Videogamer.com.

Xbox Live users will be able to buy branded items for their avatars, such as T-Shirts, from game publishers. Microsoft also noted that gamers might be able to dress their avatars to look like a particular game character, and that traditional fashion brands might also be incorporated into the store.

Microsoft is also planning unlockable avatar items based on in-game achievements.

"Our vision for these in the future is well and truly tied to game releases, and us working with publishers very closely to encourage rewards from those games to be tied to your Avatar," said Xbox Live product manager Robin Burrowes.

The Xbox Live avatars will go live on November 19, along with the rest of the New Xbox Experience.

Signups for the beta preview of the New Xbox Experience--Microsoft's dashboard overhaul for the Xbox 360--are full, according to Microsoft's Larry "Major Nelson" Hryb.

Destructoid spotted that the Major edited his post to say that the program is now full and no longer accepting applications. Not everyone who applied will get a spot in the beta, so those wanting to try out the interface will have to wait for an email.

"I don't expect it to be before tomorrow night or Wednesday," wrote Hryb on Major Nelson's Twitter account regarding that email.

Wednesday, October 29 is also the day that press embargoes are lifted on the New Xbox Experience, meaning either way, fans of Avatars, Netflix and user-made games will get their fill of info that day.

The update will be made available for the general public on November 19.