Here's what we can expect:
* Improved voice quality – the audio codec is being updated to improve Xbox LIVE Party chat audio quality.
* Improved experience for changing your Gamertag – choosing a new Gamertag? If the Gamertag you’re looking for is already taken, your Avatar will spin a wheel which will provide five other Gamertag suggestions at a time for you to choose from.
* Streamlined in-dashboard virtual keyboard – they have taken the existing QWERTY keyboard in-dash and made it easier to use for scenarios that involve repeated text entry, for example when signing up for Live within the dashboard.
* Improved Xbox Live Marketplace UI and browse experience – the Games Marketplace has been re-organized to provide streamlined access to the games and content you want, reducing the number of steps it takes to get to a download.
* Avatar changes – they have made your Avatars slightly more proportional so you can better play Kinect games.
* Easier to get on a wireless network – trying to connect to a wireless network? With the next update, you’ll see a list of all the wireless networks within range when you go into network settings. From there, you’ll be able to select a new network or further configure the network you’re connected to.
* Ability to sign-out other controllers in the sign-in UI – they are adding the ability to sign-out profiles on other controllers in the sign-in UI within the Guide. This is especially useful when playing games like Rock Band.
* New browse experience for 100 per cent completed games – you spent a lot of time and effort earning those Achievements, so instead of only being able to view your first dozen completed games, they are giving you a new and better way to browse all of them.
Kinect will be available to buy a few days after the update, on November 10, 2010.