We don't know exactly what's going on, but both Xbox Live and Zune Marketplace are apparently acting up right now -- we've gotten reports that the entire Zune user database is more or less MIA, while Xbox Live seems unable to process purchases reliably. If we had to guess, we'd say that Microsoft's free Thriller video giveaway is causing some pretty massive server strain, but that's just a shot in the dark. Keep us posted on how you're doing, and we'll let you know if we hear anything official.

[Thanks to everyone who sent this in]

Microsoft's E3 keynote was so jam-packed the company decided to wait until afterwards to announce what might be the biggest new feature of them all: on-demand access to full retail games. The service will launch in August with 30 titles to start, and new games will be added weekly, with pricing to match retail. The best part? Purchases can be made directly with a credit card, no pesky Xbox points required. More pics of the system after the break.

Update: Don't get your hopes up, MS tells us that the point system isn't going anywhere, it's just being supplemented with credit card purchases. Also, game rentals aren't happening yet, but they said it "sounds great for the future."

US Americans, go ahead and enjoy your Netflix streaming over your Xbox 360, Brits are about to land a deal that'll put live football, TV, and films over Microsoft's broadband-enabled console -- a first live television service for Xbox 360 anywhere. Beginning in Autumn, Xbox Live subscribers in the UK and Ireland will gain access to Sky's Sky Player service that includes subscription-based live, on-demand, and pay-per-view access to your favorite shows without the need for an additional set-top-box or satellite dish. Unfortunately, specifics like prices and channel line-up have not been announced, though content is expected to be similar to the Sky Player service already available on Macs and PCs. Of interest, Xbox Live users will be able to watch sporting content together virtually and sling insults and taunts at one-another via avatars or virtual personas. Something that will lead to slurring songs in a fit of semi-social inebriation or fisticuffs, depending on the score.

[Via Gadgetoid]

That's right folks, the Zune HD is real, and it's coming this Fall. Microsoft officially announced the next iteration in their Zune line today, making it less of a tripped out pipe dream, and more of a totally tubular reality. The specs, which look exactly like that leak we saw, go like this: 3.3-inch, 480 x 272 OLED capacitive touchscreen display, built-in HD Radio receiver, HD output (utilizing a new dock -- not on-board), and... not much more right now. Microsoft is doing away with the famed squircle in favor a full multitouch device, and they seemed to indicate that some new touch-friendly apps and games would be headed our way, though they were fairly mum when it came to details. The device will boast an IE-based, customized browser, but little else was said in the way of software.

Details are also scarce concerning storage capacities, CPU performance, and other crucial numbers, but it seems like they've got more in store come E3... and that's the next big piece of news. Zune integration is coming to the Xbox and Xbox Live, as the Zune marketplace will step in to replace the current Live video resources, expanding the library and offering all kinds of new perks, like Zune's first foray into international waters. According to the company, at E3 "attendees will see first-hand how Zune integrates into Xbox LIVE creating a game-changing entertainment experience" -- we're not entirely sure what the means right now, but it sounds sweet. Try to contain your excitement.

Update: Microsoft's just sent out a press release (after the break) and launched an official Zune HD page.

Update 2: We just got sent a picture of black Zune HD, now after the break, which we're told Microsoft is giving out to selected "Zune MVP" sites such as Inside the Circle and ZuneTracks. See it for yourself after the break.

Amazon might still make most of its money by shipping physical items to your door, but it's clear that the retail giant knows the future of media is digital -- not only is it pushing the Kindle and services like Amazon Video On Demand, it's expanding its downloadable video game catalog to include Xbox Live Arcade games today. The process seems a little clunky at the moment -- you buy a code from Amazon that you have enter into your Xbox -- and it's not exactly easy to compare prices, since Amazon charges you real money instead of Xbox Live points, but we're not going to complain too much about anything that increases gamer choice. (Using real money actually seems like a benefit to us -- we've never really loved the idea of points.) The service is live now, anyone going to do a little shopping?

[Via Joystiq]

Sony announced a landmark this week for its PlayStation Network: 20 million users worldwide, as of February 20. According to the presser, that breaks down to 5 million in the first 14 months of service, 5 million more 8 months later, and an additional 10 million the 7 months after that. There's quite a few caveats to consider here, as that includes PSP and PS3 users as well as anyone who wishes to use the official PS forums, whether or not they own one of the aforementioned consoles.

However, more interesting to us is a note about the service generating $180 million life to date in revenue. It's a stark contrast to Xbox Live's reported $1 billion revenue since its 2002 launch, as of E3 2009. Based on figures from leaked to Seattle P-I this week, which said XBL had 10 million subscribers worldwide and a 56 percent Gold subscriptions rate in February 2008, we can do some fuzzy math. Assuming those Gold members paid the $50 annual subscription -- or $4.16 monthly, the cheapest per month option -- that amounts to $23.3 million for the month, not accounting for discounts or free Gold trials. Presuming no subscription growth for sake of argument -- we know it's growing -- that's $280 million annually, well over PSN's life to date revenues. Say what you will about mean ol' Microsoft charging for online play, the numbers seem to go in its favor.

[Via Joystiq]

Read - Leaked XBL data
Read - Comparing XBL vs. PSN
Read - Sony press release

Bad news first: there might be a bit more competition than you expected for that home theater giveaway. Good luck bringing down Netflix's shooting star though, as if last week's good news train wasn't enough comes news that over a million Xbox Live Gold members have already downloaded and activated the Watch Instantly app since its NXE debut last November. That's more than 10% of Netflix's just announced 9.4 million subscribers who've already watched over 1.5 billion minutes of TV and movies through their consoles. They're not the only ones happy, while streaming may be eating into DVD rentals, Xbox Live Marketplace rentals are up 174 percent year over year. The streaming library is up to 12,000 titles, with a "growing percentage" in high definition, for the rest of the celebratory details check the full PR after the break. Nothing left for us to say but congratulations and hey, if you get a minute, could you fix Nilay's HD streaming on the Xbox? Thanks.

It looks like Microsoft doesn't want a repeat of last year's post-holiday Xbox Live outages, when the service was basically unusable for two weeks -- according to 360 product manager Aaron Greenberg, MS is "well prepared for the type of growth we expect this holiday," and that more Live staffers than ever before will be on hand to fix things if things do go bonkers. From what we've heard Live is more robust than ever now that the NXE and the associated backend changes have been rolled out, so we're hoping things go well -- but we wouldn't necessarily say no to another free Arcade game.

[Via Xbox 360 Fanboy]

Thanks to a special blessing from the folks in Redmond, we've had an opportunity to thoroughly give the rejiggered Xbox 360 Dash (AKA, the New Xbox Experience) a serious run through, and we've got the lowdown on the future of your gaming life. As you probably already know from the numerous posts we've done and generally available info (Microsoft has been pretty forthcoming with this stuff), the Xbox team has completely revamped the Dash experience, giving the system not only a visual overhaul, but trashing the underlying tech and rebuilding things from the ground up. The result is a beautiful, intuitive interface which loses almost nothing from previous versions while adding a considerable new feature set to the mix. Read on for our first impressions.

Hints of a 60GB Xbox Live Starter Pack popped up in Europe in August, but according to GameStop and a leaked Circuit City ad, the $99 upgrade should land in American stores sometime next week. Just as we'd heard, the bundle will include three months of Live Gold, a wired headset, and a 60GB hard drive -- just the thing to meet that new 128MB New Xbox Experience storage requirement. Too bad Microsoft isn't going to discount this bundle quite as heavily as that $30 20GB package for Arcade owners, but we won't complain too loudly -- hell, if MS would just cut the price on that ridiculous $149 120GB unit, we'd be all smiles.

[Via Xbox 360 Fanboy]

You already know the Xbox 360 is getting new community features, a revamped dashboard, Avatars, and of course Netflix video -- all things we've been excited about since we saw them in action at E3 this year. There hasn't been much to go on since then, but we recently came across some short videos exhibiting Parties (which let users socialize and make plans while engaging in separate games and activities) and Avatar customization options; hopefully they'll hold you over until the features go live November 19th. We won't be held responsible for the brain deterioration caused by the vacuous marketing-speak accompanying the moving images, however. "It is where you get to enjoy entertainment -- that's the vision." Yes, it is.

Microsoft's New Xbox Experience has been pored over and dated, but now that Major Nelson has revealed it requires "at least" 128MB storage available to work, where does that leave suckers Core and Arcade SKU Xbox 360 owners? Enter the Xbox 360 Memory Upgrade Program, doling out free 512MB MU's or $20 20GB HDDs to Core owners, and a $30 20GB HDD + 3 months of Xbox Live package to Arcade owners looking to upgrade. November 19, Xbox Live becomes a storage-only affair (that goes for Netflix streams too, requiring 8MB of free space), so grab your serial number and console ID from the current Xbox 360 Dashboard and hit the registration website. Impressive customer service gesture to extend functionality for all, or more evidence of a short sighted and flawed dual-SKU launch plan that's cost gamers and developers alike? All we know for sure is we've probably figured out where the profits from those $149 120GB HDDs are going.

[Via NeoGAF]

Simmer down folks -- everything is going to be a-okay. Yes, 'tis true -- Microsoft has indeed scheduled for Xbox Live service maintenance and Zune service tweakage to take place at the exact same time this coming Monday, but it's probably not worth losing your mind over. In fact, Major Nelson goes out of his way to affirm that "when [Xbox Live] service returns, you will not have any new features and you will not have the new Xbox experience update." Point being, your Zune Social, Zune.net forums, all of the Zune Marketplace and Xbox Live services will be offline for up to 24 hours (48 hours for the Zune suite) starting at 12:01 PST on September 29th, but don't expect a Zunephone to pop out of your now-forgotten HD DVD add-on when things come back on. Or you can, but we'd be prepared for unprecedented disappointment.

[Thanks to everyone who sent this in]

Read - Xbox Live down time
Read - Zune services down time