Microsoft has announced a master stroke service that will enable Xbox 360 users to access the massive Windows Live Messenger instant messaging network. Currently about 6 million Xbox Live members can chat with each other through their games consoles. The new move from Microsoft will instantly expand their reach to more than a quarter of a billion IM users on PCs and mobile devices.

Xbox 360 users will be able to text each other and other Windows IM users through the unwieldy onscreen virtual keyboard or plug a QWERTY keyboard into a USB port on the console. Microsoft also plans to release a QWERTY keyboard that plugs into the Xbox 360 controller in the second half, fitting in between the two ‘handles’ of the Xbox 360’s controller, images of which you can see at Kotaku’s website.

Microsoft's move to expand the IM capabilities of Xbox 360 signals a trend for two of the three console leaders to expand the capabilities of the current generation of consoles beyond pure gaming and into the realm of family entertainment.

It also signals a potential future where Microsoft might bring more traditional computer functions to the Xbox 360, such as a web browser (already offered by Sony’s PS3 and Nintendo’s Wii), along with the potential for an Xbox 360 version of Office, basic photo editing tools and the ability to plug any printer into one of the Xbox 360’s USB ports.

That future, however, is likely to be long from being a reality, as it would signal direct competition with Microsoft’s own Windows Vista and PC hardware manufacturing partners, including Dell, HP, Lenovo, Toshiba, Sony, Acer, Asus and many others, most of whom would not appreciate having Microsoft as a direct competitor – or at least, not yet.

Microsoft are also launching a ‘Spring Update’ on the 7th of May, with the new instant messaging feature simply the big headline feature.

Plenty of other new features are included, ranging from enhanced family settings, better Achievement notifications, an improved Xbox Live Marketplace blade, updates to the Xbox Live Arcade, an auto download of trial versions of Xbox Live Arcade games, better progressive download controls for video downloads, an option to automatically switch off the Xbox 360 after downloads are complete, if desired.

The Xbox 360 Dashboard also gets a range of mini updates, ranging from the name of the game in the tray being displayed on the dashboard, a progress bar showing download completion, better fast forward and rewind functionality when watching video, switchable aspect ratios and more. See Microsoft’s announcement for all the additional details.

To conclude, it’s clear that Microsoft wants to keep the Xbox 360 at the top of everyone’s mind following the ‘rest-of-the-world’ launch of the PS3 and the surprising success of the Nintendo Wii. As long as Microsoft keeps on releasing top notch games and adding new features to Xbox LIVE on a regular basis, as they have been doing now for a few months with the addition of video downloads (in the US), a new Xbox 360 Elite model, and now new instant messaging features, the Xbox 360’s future is assured despite the incredible pressure from the competition. It’s certainly not the last announcement we’ll hear from Microsoft – or Sony, or Nintendo – this year!
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