Of all the additions, most noteworthy is the integration of Windows Live Messenger (formerly known as MSN Messenger). Users will be able to chat and sent instant messages to their Windows and Xbox Live contacts via the standard virtual keyboard interface, a USB keyboard, or the Xbox 360 Text Input Device controller add-on (pictured left) due out later this summer. Microsoft provided two screenshots of the Messenger chat implementation, along with several shots of the Text Input Device.

The update also allows Xbox 360 consoles to play H.264 video and adds more support for MPEG-4 Part 2 content. Many assume this includes the ability to decode popular Xvid and DivX codecs, though Microsoft had not responded to Shacknews' inquiries on the matter at the time this story was published.

With the update installed, consoles will provide users with more detailed notifications, both in-game and on the dashboard. The dashboard now lists the contents of the disc drive in the dashboard's tray status area; currently, the labels are limited to "Open Tray," "Close Tray," or "Play Game." Achievement notifications have been expanded as well, now displaying the name of the unlocked achievement and its point value along with the standard "Achievement Unlocked" message. An example of the more detailed notifications can be seen in this screenshot.

Furthermore, Xbox Live Marketplace will receive its own blade on the Xbox 360 dashboard, allowing for easier navigation and detailed descriptions of content. The update also improves on a number of minor issues, such as checking to ensure a storage device has enough room before processing a transaction. A full list of the changes can be found at Xbox.com.