For two years, Microsoft has steadily added new features to its Xbox 360 console and Xbox Live online service, expanding their capabilities far beyond video games. As the competition for holiday sales heats up against a dismal economic backdrop, the company is releasing a major software update Wednesday meant to make it easier for console users to access features like downloadable movies and TV shows, photo sharing, online “parties” and other social content.

Microsoft hopes its New Xbox Experience, along with a price cut it was able to make ahead of its competitors, will drive more console sales to a mainstream audience (analysts say the company has nearly saturated the hard-core-gamer market) and generate more revenue from Xbox Live through subscriptions and content downloads.

Source: Seattle Times