Any time one video game company attempts to capitalize on another company's good idea, there's always a bit of backlash from the fans of the company copied. We can only imagine the kind of retribution Microsoft will soon face from fans of the Wii's Miis and the PS3's Home -- if our sources are accurate, their upcoming "Avatar" service bears a striking resemblance to Sony and Nintendo's pre-existing lookalike creators.

"Avatars", mentioned in an independent survey for Microsoft (as taken by an X3F tipster), will supposedly be used in place of gamer pictures, and will give Xbox Live subscribers an animated, customizable online persona. The meager amount of information provided for the service claims it will be available "this holiday for all Xbox Live connected members", and "this Spring for all new console owners."

This information lines up nicely with details recently relayed to Joystiq by a trusted source, who tells us that a robust "avatar" (source's term) creation service which blends the customization options of Home with the in-game functionality of Miis would comprise a substantial chunk of the 360's fall update. With the breath of E3 hot upon our nape, we're sure to hear something more concrete about this service in the coming month.

The Xbox dev team has posted an updated FAQ answering a smorgasbord of video playback questions. Confirming the results of Joystiq's own tests -- yep, DivX and Xvid files now play perfectly -- the guide acknowledges support for MPEG-4 Part 2 (Simple and Advanced Simple Profile) videos, which will be playable once tomorrow's update has been installed. The post does note that additional functionalities (menus, subtitles, multiple audio tracks, etc.) that are sometimes contained in DivX files will not be supported by Xbox 360, and in some cases can render such files unplayable. Though, for the most part, all of your BitTorrent'd cache will play whether streamed from a computer or fed directly from a USB storage device.

The Xbox Team's guide also gives pointers on how to organize your files into a hierarchy that takes advantage of 360's sorting filters and how to associate a thumbnail image with each video, in addition to a list of gamepad shortcuts: Push 'Start' to begin video playback from a bookmarked position and bypass the Resume/Restart sub-page. But it's not all just "duh" tips, the FAQ gets into the nitty-gritty of BVOPs, quarter pixel motion compensation, and even ... quantization! (Yeah, we're just gonna keep on pretendin' like we know.)

[Thanks, Thomas]

Things were a little different this year. For their second Xbox 360 Fall Dashboard Update, Microsoft decided to trickle the features out instead of dropping them on us all at once. Around Halloween, we realized things were awful quiet, so we asked you what you wanted to see in the Fall Update. On November 7, Microsoft kicked things off by announcing the Parental Timer, a feature we're certain you're all eager to try out. They followed that up on November 13 by confirming Xbox Originals, downloadable Xbox 1 games for your 360. On the 26th, they spilled the beans on the social-networky "Friends of Friends" feature, ostensibly to give paranoid folks some time to disable the functionality (which they can do here). Capping it all off a day later, MS Japan dropped some info, notably the ability to set your real name (your real name is xXsmokezmadbluntz420Xx?), your location, and a brief bio – more of that social networking stuff the kids are crazy about.

Finally, after what seemed an interminable wait, Microsoft was ready to let us in on the big picture. We spoke with Microsoft's Aaron Greenberg about next Tuesday's update and what was still in store. "There are three different categories that speak to a majority of the updates," Greenberg told us.

A recently purchased Microsoft Points Card package (manufactured in Ireland) confirms the impending launch of Xbox Live Video Marketplace in Europe, apparently limited to the UK, Ireland, France, and Germany. The packaging also suggests that users will be able to rent "great movies" (in high-def), but does not mention the possible availability of television content.

Microsoft has loosely targeted a year-end release for Video Marketplace in parts of Europe (and Canada), and with this new evidence, we should expect Tuesday's Dashboard Update to include the service in all relevant territories.

[Thanks, RazorD]

Microsoft Japan recently held a small press briefing detailing some of the new features bundled into the Xbox 360 Fall Dashboard Update. With the help of Engadget Japanese's Ittousai we've been able to pinpoint a few relevant changes that are in store for next Tuesday's update. The most significant addition is the reorganization of the "games" blade (pictured above), which now features the "Games Library" (in place of "Xbox Live Arcade"), in addition to the old "Achievements" and "Played Games" sections.

When opened, the Games Library is nearly identical to the current XBLA menu, with a vertically-scrolling games list and an info box appearing for the highlighted game [Famitsu image]. New, however, is a horizontal sorting menu, broken down by filters like "All Games," "Arcade," "Demos," and "Recent Downloads." (This new horizontal and vertical organization is not unlike Sony's XMB design -- Microsoft calls it "twist" navigation, the same UI used for Zune.)

Additional Fall Update features:

• Top level of "marketplace" has been reorganized and reduced to four categories: "Featured Content," "What's New," "Game Store," and "Video Store" (below top level, categories will be navigated by twist, just like the Games Library)
  
• "Personal Profile" added to Gamer Profile; text field allowing approx. 500-1000 characters, providing space to publish name, nationality, region, and self introduction. (Further social networking tools to accompany 'Friends of Friends' functionality)
• XBLA demos deleted from "Played Games" and Gamercard lists
  

Note: This feature set is by no means complete, and we should expect to see variations in and additions to the North American update, which will be made available on Dec. 4th.

Read - Game Watch (Impress)
Read - Famitsu

So, we know those IPTV screens are "unrelated" to the Xbox 360's Fall Update, but that's about all we know about the last of this year's major 360 updates. Last year's Fall Update (was that really the first?) included 1080p support, HD DVD functionality, XNA functionality, WMV compatibility, and more. Some pretty big-ticket items in there, to be sure. And there's been two Spring Updates ('06 and '07), both of which came with some huge improvements including background downloading and chat and IM functionality.

Just two days before the one-year anniversary of the Fall Update, we'd like to ask you Joystiqers, what should we expect to see in this year's Fall Update? We've heard rumors of DivX video support, an XBLA blade, and integrated clan functionality. Surely there's more up the sleeve of Redmond's oversized fall-themed sweater. Us? We'd love to be able to change the listed gamertag of 'xXsmokezmadbluntz420Xx' to the more frequently used title: 'Mom'. And what do you, dear readers, want to see in your Fall Update? Vote up the comments you like best and we'll compile the best answers later in the week.

Turns out those images of an Xbox 360 with IPTV were legit. In a statement issued by Microsoft, the Redmond-based company acknowledged that the IPTV features "were inadvertently exposed while the customer's console was being serviced and is unrelated to the Fall Update."

The IPTV features, according to the statement, are part of the Microsoft Mediaroom services and will be made available to service providers by the end of this year, adding that it will be up to them to decide when the service is deployed. We've posted Microsoft's complete statement after the break.

Several images of IPTV options being displayed in the Xbox 360's dashboard have made their way into the blogosphere, courtesy of our pals* at X3F. According to tipster Aaron, the console recently returned from the oft-visited Microsoft repair center, only to display several new and seemingly incomplete menu additions. Appearing under the Media and System blades, mentions of DVR storage, live television services and pause buffers all seem to imply that the Xbox 360's IPTV services are close enough for us to start using words like "impending."

If these images are indeed proof of premature tweaks to the console (which still shows an older dashboard version number), one can speculate that IPTV may be introduced with this Fall's dashboard update. We've already asked Microsoft to comment, but if they treat this anything like the Arcade SKU, we can expect them to deny it until well after everybody's started watching TV on their consoles.

*This status may change should those bastards fail to return our copy of American Ninja 4.