Those of you in the U.S. will see a number of Netflix updates, including the ability to browse the library and manage your queue, more consistent playback when your internet bandwidth fluctuates, and the ability to form "Movie Parties" where up to eight Gold members can sit together in a virtual theater to watch a film. Xbox Live Parties in general will also see an update, with party invites being streamlined down to a one-click system, and automatic reconnections for users who accidently get disconnected while in one.
One of the most anticipated new features, Games On Demand, will launch in August as part of a preview release. This means full Xbox 360 games available for purchase via Live using either Microsoft Points or any debit or credit cards you have.
The update will also include a new Rate It system for downloadable games, a section to buy clothes for user avatars and many other interface tweaks and usability improvements.