YES! Xbox 360 will have XviD playback. And it's the "proper" version with MP4 ASP support and AC-3 decoding, so all those pirated rips out there ought to work right away. We had to wait two years for this, but it's bloody good to finally have it.

YES! A whole load of Xbox Live Arcade games will now be cheaper - permanently - with the Xbox Live Arcade Hits budget range. Lumines Live for 800 points? Rocking!

YES! You will be able to delete details of demos you've played from your games list, just in case you're ashamed about what gaming crimes you've committed while bored over the weekend.

YES! You can finally change the Windows Live ID associated with your Gamertag - and update your age setting if you've recently turned 18. This is one of the longest-running whinges about Xbox Live, especially from 18.1 year olds.

Elsewhere, there's a new RSS-type news feed called "Inside Xbox" that appears on your console telling what's "up" in the world of Xbox 360, new navigation options including a "Game Store" button and better live preview options for in-progress video downloads.

All these and more things we already knew about (Friends of Friends, Xbox originals, Parental Timer), just confirmed by the Microsoft insiders over at Gamerscoreblog. This dashboard update will appear for download sometime on Tuesday December 4.

Watch a superb explanation video of all the new features after the "jump":

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