At the E3 keynote Microsoft just dropped its all new Xbox Live dashboard into our laps. The slick new tile-heavy interface (think: Windows Phone 7 and Windows 8) has Kinect voice search powered by Bing, which extends universally across Netflix, Hulu, games and movies all at the same time. (You can search X-Men, for example, and get video selections and the game adaptation of Wolverine.)

Theyve also outed Xbox Live TV which will bring (you guessed it) live streaming TV with content partnerships (like Canal+, Sky TV and Foxtel). Oh, and YouTube is also hitting Xbox Live in the fall, which is when the refresh arrives. Were on the edge of our seats to see some video of the voice search in action, and well be updating with more information on this very welcome overhaul as we get it.

Microsoft announced during its E3 2011 press conference that a brand new Kinect dashboard is headed to the Xbox 360. The Kinect will soon be able to control the entire Xbox experience using voice commands, with an onstage demo showing a user accessing games and music with simple voice commands.

New content will be added, including support for YouTube and Bing, both of which allow search via voice commands. Live television will also be added. The "new Xbox experience" -- the NXE 2.0, if you will -- is scheduled to launch this fall.

.Microsoft says
Improved voice quality the audio codec is being updated to improve Xbox LIVE Party chat audio quality. So grab your friends and jump into a multiplayer game, catch a big sports event, watch a movie or do all three.

.Improved experience for changing your Gamertag choosing a new Gamertag? If the Gamertag you're looking for is already taken, your Avatar will spin a wheel and we will provide five other Gamertag suggestions at a time for you to choose from.

.Streamlined in-dashboard virtual keyboard we've taken the existing QWERTY keyboard in-dash and made it easier to use for scenarios that involve repeated text entry, for example when signing up for Live within the dashboard.

.Improved Xbox Live Marketplace UI and browse experience the Games Marketplace has been re-organized to provide streamlined access to the games and content you want, reducing the number of steps it takes to get to a download.

.Avatar changes we've made your Avatars slightly more proportional so you can better play Kinect games.

According to news from Kotaku, the new Xbox 360 firmware upgrade arriving imminently is incompatible with "a very small number" of consoles, and will prevent certain games from running on the console. The good news is that the platform holder will replace these machines with a brand new Xbox 360 S with 250GB hard drive.

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Xbox Live's Larry "Major Nelson" Hryb has added further detail on Microsoft's plans to use Kinect on Xbox 360 in a variety of new ways.

The new dashboard is, according to the Major, "simpler, cleaner and easier to navigatewith a new look and feel that makes it even more open, inviting and intuitive to navigate. All of your favorite content is categorized in a way that is easy to browse and find what you're looking for, plus you can use voice anywhere in the dashboard to effortlessly navigate and get to what you want."

Nelson then talks about bringing Bing to Xbox, explaining that: "Bing on Xbox searches Netflix, Hulu Plus, ESPN, as well as our music, video and Xbox LIVE marketplaces to find exactly the entertainment you want to enjoy. With Bing on Xbox and Kinect, you can effortlessly find the games, movies, TV shows, sports and music you want by only using your voice. You say it, Xbox finds it. The experience is now simpler than ever before."

And voice support is key to the new Xbox 360 interface, with Microsoft "committed to bringing voice to eight additional markets by the end of this year with a total of 13 markets that will have Kinect voice."

Xbox beacons and cloud storage

Beacons are another new addiction to Xbox Live, which are essentially new ways of flagging to your mates what games you want to play with them.

Finally, cloud storage for your Xbox game saves and your Xbox Live profile is also on the way later this year.

"Here at Xbox Live we listen to your feedback," says the Major. "We are making it easier for you to sign into your Xbox LIVE account from any console at any time to access your game saves and full profile, including items such as Microsoft Points to make purchases, Achievements and friends. Gone are the days of "gamertag recovery." Now all you need to do is sign in, no matter where you are!"

The system update also includes an auto-standby feature that places your console on standby if it's idle for more than one hour, helping to reduce power consumption, and further integration with PayPal.

"Once you've linked your PayPal account to your Xbox Live account on Xbox.com, you'll be off and running to use it as a billing option, allowing you to buy content such as Microsoft Points, Xbox Live Gold subscriptions and Games on Demand titles," explains official mouthpiece Larry 'Major Nelson' Hryb.

Microsoft plans to roll out the 360 system update "gradually" to all Live users starting today "and throughout the next couple weeks", which it says is to "ensure a high quality deployment".

"Just like any other update to our service, you will know you've received it when you turn on your Xbox 360 console, connect to Xbox Live and receive a notification to download the update. It's important to note that it may take a few days to make its way around the globe. Thanks for your patience if you don't get it right away!"