First up is Games on Demand, which will launch with about 30 different titles. You'll be able to use a credit card to buy games right from your Xbox 360. Digital distribution for games like Assassin's Creed and Mass Effect? Yes, thank you. The Games on Demand, along with all the other Live content, will now also have user ratings on them, so you can see if something is a winner or a waste before you plunk down your cash.
We also saw a trailer of upcoming XBLA titles,during which we got a glimpse of Monkey Island. As you might expect, it's been given a graphical overhaul, but it still looks very much like the Monkey Island you remember and love.
Way back when the avatars for the New Xbox Experience were announced, we were promised that you'd be able to unlock new costume items by playing games. Well, they're finally doing it. You'll be awarded clothing items and props by playing through games; the example provided was a full suit of ODST armor. Props included pompoms (just what every shock trooper needs) and a remote control Warthog.
Adding to the avatar customization will be the Avatar Marketplace, which will let you buy specialty items, perhaps from a particular designer or manufacturer.