VGChartz is running a megaton rumor about the launch of the new Xbox 360 dashboard. It has our curiosity piqued because of its creativity and sheer audacity. The story goes that Microsoft will have a five-hour televised countdown beginning September 25 at 7PM Eastern leading to the New Xbox Experience and the software-based relaunch of the console at midnight.

Allegedly, G4 will cover the event exclusively and Live members will be able to stream it. The rumor gets even bigger by saying that three new components of the NXE will be unveiled when the update happens at midnight. First is a partnership with Sirius Radio, allowing users to access the satellite radio station for a "modest monthly fee." Then there's the music store page -- think iTunes, except on your Xbox. Finally, there's the "mad lib" page, though nobody seems to know what the _______ it is.

Sending this whole thing into overdrive, the source claims Microsoft will announce 12 new titles "exclusive or first" on the 360, including Assassin's Creed 2, Mass Effect 2, a new Conker game and two new Halo titles. Also, six free original Xbox games will be available to download, with Halo being one of them.

The whole thing sounds like madness (and fanboy conjecture), but given the Xbox 360's slipping sales, a mega-event relaunch might just be the reset button the company needs for the console best-known to general consumers for the RRoD. The whole rumor isn't even that insane when we recall how Microsoft went all-out for the first Xbox 360 launch and, if Microsoft execs are to be believed, this is "an entirely new Xbox" made possible by "the magic of software."

[Via X3F]