The newest Xbox live update is in the process of filtering out to the masses, and it brings with it some pretty sweet features. It'll offer downloadable Games on Demand (full games!), new Netflix options and a bunch more.
Microsoft had too much news for the keynote, so they're taking care of the spillover now: First up, full Xbox Live games on demand. That's right, you can download Mass Effect, Bioshock and more. Using a real credit card—no Xbox Live points—with retail-like pricing. They're coming in August.