E3 2008: 360 Fall update detailed

In what was probably the least surprising reveal of Microsoft's conference, the 360 is going to be getting an interface update this fall.
The news originally leaked last month thanks to some lackluster security by a marketing firm and some investigative work by those crafty gamers at Neogaf.
Now officially confirmed by Microsoft, the fall update will include a variety of new features including an 'Xbox Live Primetime' channel, avatars, and 'Live Parties'.
The Xbox Live Primetime channel is being created in partnership with Endemonal, originator of shows including 1 vs. 100 and Deal or No Deal.
In what sounds like a somewhat surreal version of interactive television, gamers will be able to watch and play online for the opportunity to win prizes.
No details were provided about regional launches, bringing into question whether or not the channel will ever make it to Australia, much like most digital media content available elsewhere on Live. Gamercards are also due to be refreshed with 'Avatars', a clear nod to the Wii's Miis.

Avatar penetration is apparently set to pervasive, with the Avatars planned to show up on Gamercards, the Dashboard, in games, and on Websites.
It's exceedingly likely that Microsoft will be taking advantage of Passport platform integration in some way.
Avatars will feature clothes and multiple customisation options. Sharing is apparently also caring, with Microsoft announcing the creation of 'Live Parties' where up to eight friends will be able to chat and, should you be so lucky as to have access to digital media, share Netflix movies.

However, the huge news hit shortly after the conference, with Major Nelson revealing additional detail.
In what will simultaneously frustrate current 360 owners while also making them squeal with glee, the Fall update will also include an option to install the full game to your drive, eliminating disc noise and avoiding read errors.
Much like the genie in Aladdin's lamp, extreme speed and power, but only a teeny living space.