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Early this morning Microsoft released a major update to the Xbox360 Dashboard.

The update includes several new video playback options, including up to full 1080p playback, and the addition of LIVE services including MSN Messenger.

Updates include:

  • H.264 video support: Up to 10Mbps peak, Baseline, Main, and High profiles with 2 channel AAC LC.
  • Added MPEG-4 Part 2 video support: Up to 5Mbps peak, Simple Profile with 2 channel AAC LC.
  • PlaysForSure
  • MSN LIVE features including MSN Messenger

Engadget took a look at the video codecs, and you can see their hands on account of it here.

Microsoft issued a press release about the integration of Messenger which you can read here.

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