Microsoft's sixth generation Xbox Live update today includes long awaited 1080p HD support for games and movies as well as new streaming video options and new demo download options.
Following up on the promise made at Microsoft's September X06 event, today's Xbox Live update includes 1080p support, upscaling existing games and leaving the door open for developers to include 1080p in upcoming titles. The upgraded HD support also paves the way for better resolutions on HD-DVD movies, which will be supported by an HD-DVD add-on drive available later this year.
Also included is the ability to stream WMV movies from PCs with Media Player 11 or Media Connect. Also available will be the option of playing video from DVDs, USB 2.0 drives and 360 Memory Units.
In total, 85 upgrades are planned with the full list available here.
Source: Next Generation