[quote=Xbox.com] Redmond , Washington —Your Xbox Live® friends list is about to get a whole lot bigger. Microsoft Corp. today announced the launch of Windows Live™ Messenger on Xbox 360™, connecting friends across Xbox 360 consoles, Microsoft® Windows®-based PCs and Windows Mobile®-powered devices.  

With this update to Xbox 360, friends and families can easily connect and chat directly from their television using Windows Live Messenger, a network of more than 20 billion relationships and more than 260 million active accounts.

Beginning the week of May 7, 2007, the Xbox 360 Spring Update will provide Xbox 360 owners worldwide with access to Windows Live Messenger features, broadening the communication options on the Xbox Live social network.  Connected Experiences
Members of the six-million-strong Xbox Live community currently send more than two million text and voice messages a day and can now use Windows Live Messenger to text chat with up to six people on their contact list at one time, while playing games, listening to music, or watching movies. Text chat adds to the variety of options friends and families already have to communicate with on Xbox Live, including voice and video chat.   Current relationships on Windows Live Messenger and Xbox Live will be unified on Xbox 360 and users will see at a glance if their existing friends on Windows Live Messenger have gamertags, instantly expanding the breadth of connected experiences they can share online.

"Bringing the largest IM community in the world, Windows Live Messenger, to Xbox 360 makes sense, as Xbox Live has really become the largest social network on television," said Jerry Johnson, product unit manager of Xbox Live at Microsoft. "For our growing community of six million on Xbox Live, using Xbox 360 is a very social, connected experience. They are using Xbox 360 to play games, music, and movies while simultaneously communicating with one another through video, voice, and text chat. With this announcement wee are simultaneously expanding the access of Xbox Live users to existing friends and family while introducing Windows Live Messenger users to the benefits of Xbox 360."

Beginning the week of May 7, users of Windows Live Messenger on Xbox 360 can text chat using the virtual keyboard accessible on Xbox 360, or by connecting a USB keyboard to the console. This summer Microsoft will launch a QWERTY text-input device, a new accessory that will connect directly into the Xbox 360 controller to support text and instant messaging.

**********************************Other New Features*****************************************************
Beyond Windows Live Messenger, the Spring Update for Xbox 360 includes hundreds of new features and enhancements including:

    * A richer Achievement notification pop-up will showcase the name of the unlocked Achievement and the gamerscore value without needing to leave the game to check the Achievements list.
    * Enhanced family settings features for Xbox Live communications enable different defaults for video chat and voice chat.
    * A new Xbox Live Marketplace blade lets Xbox Live members access the content they seek—whether it is game content or TV shows and movies (available in the United States)—from one place on Xbox Live.
    * Updates to Xbox Live Arcade allow owners to quickly see which Xbox Live Arcade games their friends are playing and join in the fun. Xbox Live members can also compare progress of leaderboard scores and Achievements directly with all friends on their friends list. Expanded "Tell a Friend" capabilities make it easier than ever to boast about Achievements and high scores.
    * Expanded "Tell a Friend" capabilities make it easier than ever to boast about Achievements and high scores.
    * A new option in Auto Downloads provides faster access to the entire collection of free, trial-version Xbox Live Arcade games.
    * New progressive download controls provide easy access to optimal viewing options by letting people fast-forward, rewind, pause and resume as their video is downloaded from Xbox Live Marketplace.
    * Extension of the background download functionality will allow owners to set their Xbox 360 console to turn off automatically after downloads are complete.

The Spring Update is free beginning the week of May 7 and will be easily accessible to every Xbox 360 owner through Xbox Live or on Xbox.com.

You may not even notice all the new features, but they are all designed to enhance your Xbox Live experience. Some of the other features in this upgrade include:

    * The name of game in tray is now displayed in the dashboard.
    * When the tray icon is highlighted, a list of achievements, game icon and gamerscore for that game is displayed.
    * Playback progress bar indicates download completion.
    * Improved skip forward, skip back functionality during video playback.
    * Switchable aspect ratio now available during video playback (Auto to Letterbox, Zoom, Stretch, Native).
    * Player and friends lists now quickly show session presence information for quick identification of users that are joinable.
    * Support for streaming WM-DRM protected content from a PC
    * Folder view for video content on connected devices
    * H.264 video support: Up to 15 Mbps, Baseline, Main, and High (up to level 4.1) Profiles with 2 channel AAC LC and Main Profiles.
    * Added MPEG-4 Part 2 video support: Up to 8 Mbps, Simple Profile with 2 channel AAC LC and Main Profiles.
    * Show folder hierarchy for video content played from all devices.
    * Bookmarks are stored for each video that the user plays remembering the users last location in the file as well as the aspect ratio that the user choose for that file.
    * Video trick modes (fast forward, rewind, chapter skip) can now be used while downloading Video Marketplace content.
    * Skip forward and backward functionality has been improved to skip to the next or previous chapter. Each video is divided into 10 “chapters