Xbox 360 gets new interface, FFXIII, and Netflix playback

Microsoft's E3 press conference showcased several huge announcements, all coming soon to the Xbox 360. Here are the high points:

Engadget is reporting that Xbox 360's dashboard is getting completely overhauled later this fall. This new redesign includes avatars that are similar to Nintendo's Miis, and also features a new community tab that highlights IM, video chat, and photo sharing. I was a big fan of the original (and super-functional) "blade" user interface on the Xbox 360, but we'll find out how much it really adds to the online experience later this fall. Microsoft also announced several small improvements to the Xbox, including 16:10 ratio resolutions and hard-drive game installs.

In other big news, Netflix and Microsoft have teamed up to bring you Netflix's on-demand movie library at no extra cost. Specifics are scarce, but expect the service to be very similar to the Roku box's DVD-quality streaming. This service will be available when the new dashboard launches later this year.

And finally, the biggest shocker of them all (although it didn't come from Microsoft's press conference): Final Fantasy XIII is coming to the Xbox 360. Yes, really, it is. Kotaku reports that we should be expecting the popular (and usually exclusive to Sony) RPG franchise to have a North American and European simultaneous release for both the Playstation 3 and Xbox 360. This is a huge win for Microsoft as it could potentially increase the number of Xbox users in Japan, an area where they have difficulty winning over gamers. 

Want more details? Head on over to Engadget and Kotaku to get your full Microsoft fix.