Today Microsoft is rolling out a system update for the Xbox 360, bringing new features from Xbox LIVE. With the new "Games on Demand" service, you'll able to purchase some full Xbox 360 retail games from the dashboard (and later this week, purchase and queue up from xbox.com). More games will be added weekly, on Tuesdays. Manuals will be available from xbox.com.

The Avatar Marketplace debuts, which will be the place to get accessories, clothing and props for your Xbox LIVE Avatar. You'll be able to get some clothing based on games like Gears of War or fashion labels. Prices vary.

Improved browsing and playback comes to the Netflix subscription feature on Xbox LIVE. You'll also be able to watch a movie or TV show with your friends online using the Party watch feature.

There's a few other new features, including the debut of User Ratings. All game content available on the Xbox LIVE Marketplace can be rated on a 5-star scale. Add your feedback by placing a rating on a Xbox LIVE Arcade game or downloadable content.

See more details on the Xbox 360 system update features here on xbox.com.

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