As we reported last week, XBox Live got an update this week featuring the Avatar Marketplace, Games on Demand and Ratings. We’ve decided to put together a list of the newest features, and show you some of the things added with this update.

Avatar Marketplace

The most anticipated addition is undoubtedly the Avatar Marketplace. Instead of waiting for small incremental additions to the Avatar clothing options, XBox Live subscribers will be able to purchase clothing, costumes, accessories and props for their Avatar to wear and show off to their friend’s list and appearing in games likes 1 vs. 100 or Bomberman Live.

For day one, Avatar Marketplace came with a large variety of items from eight different games like Gears of War 2, Halo 3 and Star Wars: The Clone Wars, three different clothing brands like Adidas, and two clothing styles, Steampunk and Recessionista. While there is a large variety to choose from, some items feel very expensive and may be overpriced since this Marketplace is still trying to learn its pricing structure.

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Set to go live on August 11th, the Summer XBox Live update adds three new features for players to use to expand their XBox Live experience.

Part 1: Games on Demand

Much like the XBox Originals program which has slowed down as of late, players will be able to download full XBox 360 games to their hard drive after purchasing a digital copy off XBox Live Marketplace. Unlike installing the game from the disk, players will not need to insert a disc in to the drive to play the game as all licenses will be saved to the hard drive as well.

To make transactions easier, players can use credit or debit cards to purchase games instead of being forced to use Microsoft points and causing extra unnecessary steps in the purchasing process. Prices have not yet been released for the following titles which should be live when the update launches.

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