Microsoft's been planning some enhancements to their Xbox Live service, and Kotaku's Brian Crecente has the full scoop on the new additions. Not only will the update expand Microsoft's offerings in their online service, adding a better organized content listing for the popular Xbox Live Marketplace, but it will also bring new features. You'll be able to download content in the background, enhanced photo viewing, music playing, and DVD watching experiences, and integration for the forthcoming Xbox Live Camera. Though the camera won't be available until towards the holiday season, it looks as though it'll allow video chat and the use of photos as your gamertag.
I played the original Xbox a bit as several of my friends owned them, but I've yet to get my hands on a 360. This is one area that Microsoft seems to actually be doing some innovating, and they're certainly leading the pack for console online experiences. Seems like these updates are bringing a number of widely-anticipated changes to the service; it'll probably only get better.