Redmond (WA) - Microsoft updated its Xbox firmware and upgraded Xbox Live service today. The new software+service combination, called the New Xbox Experience, is released in 26 countries and is available in 11 languages. The software maker considers the product a milestone release with the hope to make the firm’s game console the center piece of home entertainment, replacing rival consoles and set-top boxes. A cornerstone of this strategy is the unlimited Netflix HD streaming feature. However, early user reports indicate that Netflix streaming did  not work for at least a certain portion of users who updated their Xbox 360.

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Microsoft posted the Xbox firmware update at 2 am Pacific time today, tightly integrated with Xbox Live, which was upgraded as well. Microsoft calls the refreshed combination a "transformation in home entertainment" and initial impressions leave little doubt that Microsoft in fact has made a big step forward.

Most new features stem from new community and social networking features, in addition to a broader focus on entertainment, not just games. The first thing Xbox 360 owners will notice is a thorough Dashboard interface redesign. Microsoft dropped the navigation blades, which were rather complicated user interface sections stacked on top of each other. Microsoft is now borrowing a page from Apple's book: Instead of blades, the new Dashboard features a first-generation Apple TV-like interface where sections spread out and stretch into the distance, zooming into position as you navigate through them. The effect: The new menu system looks less complex and much cleaner and crisper.

A host of new community features are focused around improved avatars, now animated and with detailed customization options to let gamers create their online representation throughout various parts of the Live service, such as chat and party. Users can change many details like hair, clothing and accessories, while an improved Xbox achievements system rewards gamers with new avatar content, such as clothes, tattoos, etc.

Perhaps the biggest change that impacts community gameplay is the new Virtual Parties feature. It enables up to eight people to play games together, with voice chat or instant message during gameplay, even if they are not playing the same game. Users, who subscribe to an Xbox Live Gold membership, can also share photos in real time. Community Games is another addition, basically a repository of games created by fans using Microsoft's XNA Studio development software.

The new software aligns the console much closer to Hollywood than ever before. Microsoft said it is determined to "put more games and entertainment at gamers’ fingertips than any other device connected to the TV," which shouldn't come as a surprise we consider the fact that the value in gadgets is not only in hardware, in free and premium content that comes with the hardware – the Apple's iPod+iTunes combo is perhaps the best example. The Xbox 360 aims to overtake the PS3, Nintendo Wii and Apple TV in the battle for your family room.

Unfortunately, it appears that Microsoft dropped the ball in the entertainment arena, at least temporarily. The new firmware was meant to let users who are both Netflix subscribers and Xbox Live Gold members to stream Netflix movies to the console in high-definition free of charge. However, early reports indicate that users who applied the update are greeted with error messages as soon as they tried to use the new Netflix streaming option.

Users complained that they were unable to activate the Netflix "Watch Instantly" feature, at least during the first few hours after the firmware update had gone live. More recent reports, however, show that the feature works for at least some users, meaning it could have been a temporary glitch.

What are your impressions of the New Xbox Experience? Have you installed the new firmware yet? Is Netflix "Watch Instantly" feature working for you? Share your experience with the new software with a comment below.

Worked fine for me this morning

Nov 19, 2008 10:44     

I've never seen a piece of new software not have one or two issues at launch. This shouldn't be that unexpected that some people are encountering problems. If it didn't work at all I would have been a bit surprised. Anyway it worked for me which is all I care about.
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Wii Meets Apple TV

Nov 19, 2008 10:52     

This looks like a scary cross between Wii with the avatars and Apple TV with the new interface. I was considering purchasing an Xbox to replace my Netgear EVA8000. But how much does a Xbox Live Gold membership runs?
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xbox360

Nov 19, 2008 11:08     

Sounds awesome, can't wait to get home!
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So far so awesome.

Nov 19, 2008 11:17     

I really dig the new xbox experience update. The netflix streaming worked perfectly for me at 9am EST on 11/19, so i'm not sure what the issue others were having was, but it seems to be resolved. I also really like the new 'download game disc to console feature.' This allows you to take a game disc and put it on your console, i haven't played a game that way yet, but i'd have to imagine load times will be decreased as a result; and the overall not having to switch discs every time you want to switch to certain games is a big plus. I loaded up gears of war2 and COD world at work before work, but didn't get a chance to play. So far I must say Great job MS, Netflix, and all!

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Works for me.

Nov 19, 2008 11:17     

It worked fine more. I used it several times last night and after a few restarts, to make sure it would continue to work.
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Xbox 360 aims to overtake the PS3...

Nov 19, 2008 11:26     

360 already owns the PS3 and Apple TV. Only one of the products outsells the 360 and that's the Wiiiiiiii... Anyway just thought I would help fix your facts and point out the Wii is the best!
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I don't know about the Avatars

Nov 19, 2008 11:27     

The whole avatar idea seems a little too kiddie for me, other than that everything seems much more organized , Im sure alot of people like the avatar deal but I dont want Xbox Live Turning into Gaia
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My kids would love Virtual Parties

Nov 19, 2008 11:27     

My kids are good leading indicators of what appeals in games. What they would like about Virtual Parties is the ability to play different games together. They do that now, each on their own laptop and preferring to sit nearby so they can peer over each others shoulder. They do this much more often than actually playing the same game together via shared monitor, and also somewhat more than they play together within same game but each on their own monitor.

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Themes?

Nov 19, 2008 11:29     

I downloaded it this morning. Over all its nice. I haven't played around with it to much. From looking around there doesn't seem like a quick way to start a game (a button) you have to go through the menu? If that is true, that is a step back. Also what happens to all my Themes I download over years. (most of all of them where free, but I did pay for a couple of them). Do they serve no purpose any more? I guess I can delete them? Or give me a couple of free new Themes?

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I like it

Nov 19, 2008 11:38     

I downloaded NXE this morning before work and setup my Avatar and played with the new interface. Although I like the new interface, it's going to take some getting used to. I felt that the blades were laid out in a more logical manner, whereas the new interface is not (at least, not AS logically laid out). It took me a few minutes to figure out where in the hell to change my theme, and that disappointed me a bit. I'm also not real keen on the fact that they completely ripped of the Wii's "Mii" avatars. They're very much alike. Granted, the Mii's are a little rounder and less defined. I'm a little disappointed, too, that you can't really edit accessories at all (it would be nice to be able to face the baseball cap backward or change the colors). I'm not too concerned about the Netflix thing since I use PlayOn and their Hulu interface to watch all of the shows I miss on Monday and Wednesday all without a DVR. :)

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Xbox new experience

Nov 19, 2008 11:46     

Everything was fine with my Xbox until the update. After updating, my HDMI sound no longer works. I hooked it all up standard and I have sound that way. However graphix look AWFUL. So, apparently HDMI was updated too and either my HDTV is no longer compliant with Microsoft, or my cable isnt. Either way, this means I have to BUY something to make it work. Thus, this "free update" is costing me money.

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Works for me

Nov 19, 2008 11:48     

In my case it worked great. I got the update, enabled Netflix and watched part of a movie at about 6:30am this morning. No problems.
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Sony is yet again screwing the customer

Nov 19, 2008 12:39     

"According to Joystiq (and confirmed by MTV Multiplayer) Netflix has pulled all Columbia Pictures content from the Xbox 360 instant view library due to "licensing problems." But, wouldn't you know, all the blocked content can still be viewed online and through all other Netflix enabled TV devices except for the 360." From: http://www.xbox360fanboy.com/2008/11/19/sony-blocks-entire-netflix-movie-library-from-streaming-to-the-x/ Figures that Sony would try to pull this crap. They can't sell PS3's so they do this.

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First Post

Nov 19, 2008 12:50     

Yeah that's right
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Extender

Nov 19, 2008 13:14     

I have installed it and it seems easier to use interface wise. However I am having weird glitches with the extender feature. It wants to add the PC (1 of 2) everytime I go to the Media Center window box. What is even more weird is that my HTPC (Home Premium) which worked prior to the update does not see the extender at all as it did before. My worksatation computer (Ultimate version) works but like I said...I have to configure it everytime I turn on the Xbox or go out of the Media Center window. It gives me a new key code to use also. It may be my setup and I'm still messing around with it....but it is behaving different than the Blade software. I saw no sign of Netflix in my menue's, that may be do to only being a silver subscriber for Live maybe....just a guess there.

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Seems to work well

Nov 19, 2008 15:47     

I installed it this morning all the download and installation took me between 5 to 10 minutes. I had only 15mins to get in touch with before job, but the eyes candy is great even if sometimes I felt like being on a Wii. Plus, the mii avatar has a look like the Wii avatar but with more credibilty. In general it sounds great, I'll try NetFlix tonight. Grats MS for the new xbox attraction ;)
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Light years ahead

Nov 19, 2008 22:33     

This update IMO puts the 360's social factor light years ahead of any other console on the market. The new dashboard design is fantastic and the avatar feature is really cool even if its ripped off from Nintendo. The Netflix streaming feature worked immediatey for me after the dashboard update was applied earlier this morning. When I logged onto XBL this evening and tried to run the Netflix feature I was prompted that a update was needed which took all of 2-3 minutes and away I went. All in all I think this has been a major sucess... now if Netflix would step up and stream new releases and not old crappy movies.

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Its pretty neat.

Nov 19, 2008 23:23     

Though it nothing compared to playing a new game. I read that you can watch movies with you friends in the rooms. I want to check that out but I was not able to get the nextflix working this morning. Netflix prompts you to enter a code into you pc. I pressume to match the console with the Netflix user account. My router is broke and the code expired before I could switch the modem to the computer. Overall, I like the looks. The detail is much higher. And it was still quite easy to navigate through the material. I wish the models weren't so dull. Generic faces, hair, clothes etc; That part is quite bland, but that is something that can be enhanced later on. I like how flipping through screens is similar the Vista interface. It has a 3D effect that is cool. The new interface is a good attempt to keep users interested, but like I mentioned, for me, the xbox is for gaming. I can not wait to try putting games on the hard drive. That is next.

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@ Wii Meets Apple TV

Nov 20, 2008 07:55     

$50 a year but unless you plan on playing games online or streaming netflix u don't need it. You don't need live gold to use the media player portions of the 360.
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@ Xbox new experience

Nov 20, 2008 07:59     

No problems with HDMI here. Maybe some setting got turned off?
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Netflix quality is bad

Nov 20, 2008 08:04     

The XBOX eperience is good, but the netflix video quality sucks. I don't know if it has to do with my internet speed though. If anyone has any experiendces with netflix on xbox please post them.
T report abuse vote down vote up Votes: -1

360 sucks

Nov 20, 2008 09:14     

Hahaha, microsoft just screws over their customers. YOU PAY FOR EVRYTHING..and then it breaks..lol
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Not bad

Nov 20, 2008 09:21     

Good: Introduces several new features, including copying the game disc to the hard drive, that are kind of fascinating. Bad: Everything was harder to find. Some sub menus took longer to load. Everything seemed less intuitive and accessible. Overall, things were made to look prettier at the expense of the overall performance of the interface, which is inexcusable. Ugly: Netflix. It works, but looks terrible. There are a limited selection of movies, most of which are worse than what free services like Hulu offer. Most movies are not HD which means they look terrible on the screen.

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Revised: Problem with Poker.

Nov 20, 2008 12:06     

Since I upgraded the Arcade Texas Hold'Em title freezes all the time.
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