Xbox 360 system update out now

First major update introduces more than 125 features and enhancements, including background downloading and improved DVD playback.

This morning the first Xbox 360 system update went live, so the next time you turn on your Xbox 360 the update will be downloaded and installed. The free update will install on all systems and will be distributed over Xbox Live.

Of the 125+ new features and enhancements, the background downloading functionality has been the most sought after. No longer will users have to sit and watch their console take several hours to download a demo, unable to pass the time by playing a game. Now up to six files can be queued up for download, and will do so without you even knowing, allowing you to use the 360 for something else while you wait for the files. If you happen to enter into some online gaming the downloads will be paused so that you still get the best possible online experience.

Other updates of note include improved Marketplace menus so it's easier to find what you want, custom background music now continues to play during game loads, and DVD playback has been improved.

All in all the update seems to address a number of known issues, plus brings some cool new features to the system. Now we just need some more backwards compatibility updates.