Yes, we heard the rumors and they turned out to be true. At Microsoft's E3 keynote, they finally revealed the new dashboard, complete with 3D slides and Avatars. John Schappert, head of Live services and software, told the audience: "The new look and feel is more fun, more social, and simpler to use. You'll have a Gamercard, but there's also something new... it'll be more personal with avatars. Express your personality and style, share it with your community and friends. ... pants, shirts, hats... everything you need, it's all here."

"Create, share, and have fun with all of your friends... but avatars are just the beginning. The new Xbox is tailored for the living room. Here we are at the community channel -- instead of a list of friends, you actually see them. You can chat with or send messages to your friends, but there's something new: create a Live party, private groups of up to 8 people, always connected and chatting as a party."

The Mii-like Avatars are just the beginning, he says. The new Dashboard adds a community channel, which allows you to send messages to friends or invite them to a "live party." With this upcoming update, Xbox 360 becomes an even more social experience.

Why does that sound like a mini scale Home to me? D:

Things are moving really, really, fast in the world of the 360 right now. After the news that the Dashboard would be receiving a makeover, many of you thought that it was the end of the known world. Luckily, Major Nelson has updated his blog with some of the many new details of the new interface. The first of which is that the blades interface isn't going away, it's now just a smaller part of the larger Xbox Guide.

Even bigger though is the option to install games entirely to the HDD for faster load times and no disc drive noise. However, to get the installed game to boot, the disc has to still be in the drive for an initial check to make sure you still own it.

The new party system that's built into the interface supports up to eight people and allows for chat, sharing of media, and simultaneous launch of games, all for the entire group. As for the so-called Xbox Live Primetime, it's basically a system that allows users to participate in what amounts to virtual game shows, many complete with prizes and a live host.

The last few bits include a few notes on Avatars, including their integration into Arcade games, future retail releases and of course the newly christened "Live Party". Also, for those techies out there, the update will add 16X10 over VGA or HDMI, and support for 1440x900 or 1680x1050. Oh, and you'll be able to buy anything from the Marketplace via Xbox.com too.

Plus the ol' Major promises that there is still more details to be revealed as the update draws ever closer.

Now Sony needs that option on PS3.