The video marketplace on the Xbox 360 has been re-branded with the Microsoft Zune brand. I checked that out as part of my preview of the new features coming to the 360 for Xbox Live users next month.

My hope was to stream some 1080p video to my system with no delay. I didn't have high hopes. I am reliant on Wi-Fi from a cable modem. But the modem is far away and I can seldom even get good Halo 3 match-making with my connection. So...

You'll see why I used the headline above once you watch the video.

[UPDATE: I've added my Internet connection speeds. Based on an online test, my downstream is 955kbps, upstream is 434kbps. As I said in the video and the post. Sloooow. Microsoft has recommended download speeds at least eight times greater than mine at 8-10mbps.]

The Zune marketplace supports party viewing of movies, but I wasn't able to test that.

Also not working for me during this preview were are few of the features scheduled to go live when this service launches next month: An MSNBC.com news feed, an offering of New Yorker and Dilbert cartoons and music-game-specific online stores.

Hey, this is a preview. It can't all work perfectly yet. And my home Internet connection ain't great. That's why I'm moving this weekend (other reasons, too).

Check out part 1 of this November Xbox 360 Dashboard Update preview, which shows Facebook and Twitter on my 360.

Check out part 3 of this November Xbox 360 Dashboard Update preview, which shows Last.FM on my 360.

It's the triumphant return of the Xbox Live Preview Program, and everybody is invited! Invited to apply that is, but Major Nelson says they are searching for multiple thousands of participants to test out the latest Xbox Live features, and you're just a brief application away from being considered. You can visit the Xbox Live Update Preview page right now to apply, but make sure you've got your Xbox 360 serial number handy, because they're gonna ask for it. I told you to keep it on a card in your wallet, but did you listen?

Xbox LIVE Preview Program: Zune, Facebook and Twitter [Major Nelson]

For those not in the know, the 802.11n standard is a step up from the plebeian 802.11g. The other piece of news, this new product was said to be tied to the Zune video store update on Xbox Live. So if GameStop's listing is correct, that's now on the clock for early November, too.

The unit is $99.99. As reported earlier, the original flavor 802.11g adapter is due for a $20 trim once its suped-up cousin hits.

Xbox 360 Wireless N Networking Adapter [GameStop, thanks TiKiMaN1]

The new adapter, and its ability to stream 1080p video, is tied to Microsoft's upcoming Zune video store update to Xbox Live later this year. Ars got no word on a specific release date for either, however.

Mole Spills Holiday 360 Bundle as Microsoft Begins $50 Rebate [Ars Technica]

It's called "Project Gotham Racing: Ferrari Edition", and can be glimpsed oh-so-briefly in that Zune gaming video we showed you the other day.

I love PGR, and was sad to see it go by the wayside when Bizarre Creations split for Activision. But a Zune game? Made by someone who is not Bizarre? It's just not the same.

On a brighter note, the Zune HD will be getting a more appropriate game later this year, with Audiosurf Tilt, a Zune version of the classic PC rhythm title, being ported to a device that's as perfect a fit as you could hope for.

One final game announced today was Vans Sk8: Pool Service, but we know nothing about it other than the fact it'll involve skating, and perhaps the prospect of even more ridiculously misspelled words.

This adorable little bunny is Microsoft's new wi-fi adapter, currently doing the rounds at the FCC. It supports the more recent wireless standard - read up on it here if you're scratching your head - so once it hits the market, you'll be good to go.

Provided, that is, you don't mind paying out your ass for a new version of the most over-priced accessory the video game industry has ever known.

Official Xbox 360 802.11n Wi-Fi Adapter Coming Soon [Gizmodo]

They're part of the Zune's "Xbox Series". Which basically means you buy a Zune, then pick from one of ten designs (pictured below) that can be officially engraved on the back of your player.

Note: the one above is a mockup, since being in Australia the Zune store won't even let me access actual pictures, let alone buy one.

Xbox Series [Zune]

You'll see a glimpse of a racing game if you head to about 30 seconds in. And below, you'll see that while games aren't important enough to the device to warrant full-blown Xbox brand integration, they are important enough to get a mention on the Zune's box art.

Zune HD Promo Video Offers Quick Peek at Hardware's 3D Gaming Capabilities [Gizmodo]

The stores will be located at the Scottsdale Fashion Square and The Shops at Mission Viejo. The Fashion Square already has an Apple store.

"We really picked them because they're hot markets," Kim Stocks, a Microsoft spokeswoman told the Times. "Scottsdale is one of the fastest growing markets in the U.S. Mission Viejo is consistently rated one of the best places to live."

Microsoft still hasn't set a specific date or name for the stores.

Microsoft will open stores in Orange County and Scottsdale [Seattle Times]

In an interview with Kikizo, the Microsoft man opens up a little, saying "For us, it's a matter of focusing on 'when', because if we chased after a mobile or handheld opportunity, we would not have the resources and ability to do things like... Project Natal. So we've chosen to focus on the living room experience from a hardware standpoint, if you will, but we're building a service in Live that will... will extend to other platforms. No question about it."

It's an optimistic, if carefully-worded statement, which sounds to us like it could have a lot more to do with bringing Xbox Live to advanced models of Microsoft's Zune portable media device than crafting a dedicated gaming handheld.

Exclusive: Portable Xbox Gaming a Matter of "When" [Kikizo]

"As we progress on our retail strategy there will be scenarios where we have stores in proximity to Apple," a representative told CNET News. "We are on track to open stores in the fall time frame."

Cnet reporter Ina Fried believes the company will start with a few test stores, and then open more in 2010.

Microsoft Chief Operating Officer Kevin Turner, a former Wal-Mart exec, seems to be heading up the effort.

First Microsoft retail stores to open this fall [Cnet]

Microsoft says that video start up using their new service will be "as close to instantaneous as possible" by transitioning between many different bitrates and resolutions of video. What that means, Microsoft says, is that video will start up at a low bit rate for fast download and then shift to a higher bitrate and quality as the download kicks in. The process, they say, will allow them to deliver 1080p video with little to no download delay.

Another cool feature being added is the ability to host an Xbox Live party and have your friends all gather in the virtual room as avatars to watch the real movie or TV show on their television.

The service relaunch will also include a better search function and is being expanded form eight to eighteen countries.

In addition to the current eight markets – US, Canada, UK, France, Ireland, Italy, Germany, Spain – Zune video will launch along with Xbox LIVE in Austria, Australia, Belgium, Denmark, Finland, Netherlands, New Zealand, Norway, Sweden, and Switzerland.

How pizza works: Towards the end of the live blog we will be asking a trivia question based on what have happened in the live blog, so if you're paying attention, then great! The first person to answer correctly in our comments section will snag a free pizza, delivered to your place of work or residence via the magic of the internet. Free pizza is limited to U.S. readers only, as we're the only country with decent pizza.

We'll have the entire team focused on the show and what's coming for the Xbox 360. We may even give away some pizzas and who can say no to free pizza?

If you're thirsting for E3 news now, check out our dedicated E3 page packed with all of the rumblings and announcements leading up to the show. We'll also be updating it all next week with everything E3 related.

This year we're also introducing a page dedicated to the Tweets of developers at the show. We've added tons of developers to the room, so anything they tweet with #e3expo will show up there. Should be fun.

OK E3, bring it on. We're ready!

The move is part of a growing effort by Microsoft to bring their two "entertainment" devices closer together, and is one which will no doubt heighten speculation that the upcoming ZuneHD, also confirmed by Stevenson (due out in the US this fall), will be a bit more serious as a gaming device.

Making the Zune marketplace available to Xbox Live users means that all the store's content - from music to TV shows to other video content - can now be purchased by Xbox 360 users, with no need for a Zune. It's basically like opening up the Apple Store on the console, except...not quite as good.

Users will be able to stream, rent and download content from the store when it opens in "late autumn" (so late fall), with a variety of pricing and ownership options available.

The catch: the Zune marketplace on 360 won't be available globally. Only the US, Britain, France, Italy, Germany, Ireland & Spain will have access to it, so Canadians, Australians and anyone else reading this not on that list, sorry.

We'd expect the finer details of this move to be announced at E3 next week.

UPDATE 1 - It appears that the Guardian piece broke an embargo set down for the story, and in the process got a few things wrong. An official Microsoft press release clarifying the details is on the way, we'll update as soon as we receive it.

UPDATE 2 - OK, the official press release only specifically mentions Zune video content being made available on Xbox Live.

"Zune will be a premium partner in the Xbox LIVE Video Marketplace, bringing an exciting catalog of TV and film to the platform. Zune will occupy the first slot within the Xbox user interface in the Xbox LIVE Video Marketplace, exposing the Zune brand experience to millions of new consumers for the first time. At the Electronic Entertainment Expo (E3) next week, attendees will see firsthand how Zune integrates into Xbox LIVE to create a game-changing entertainment experience."

Course, they could announce music at E3, but that seems unlikely. And without a music store, well, this whole media sharing thing is really only of use to Europeans, whose video stores don't have as much content as the Zune store does.

As for that "game-changing" hint, however...that's a little more exciting...

Zune comes to Xbox Live in UK. Plus: ZuneHD to hit US [The Guardian]

Reached for comment today, Microsoft reiterated that they have been saying since January that they will have new hardware and software for the Zune this year, but that they're not giving out any details yet.

The device, codenamed xYz, is said to offer both gaming and media playback as well as internet connectivity, but no phone.

"Although the Microsoft handheld is definitely a converged device, this is not a Zune Phone." The source added: "Microsoft won't compete with its Windows Mobile customers."

Rumors of Microsoft expanding their Zune device to be more competitive with the iPhone and portable gaming devices have been circling for quite awhile. And Microsoft is certainly still working on Live Anywhere.

When I spoke with Microsoft's Larry "Major Nelson" Hryb during PAX last year he said it was still being worked on and Microsoft mentioned it at last year's Electronic Gaming Summit, very briefly.

Maybe this is the hold up? It would certainly give Microsoft something else to talk about at E3 later this month.

Microsoft Working on Digital Entertainment Handheld [TeamXbox]

Yes, the former Xbox pin-up boy, who played a big part in the launch of both Microsoft consoles, has been awarded an honorary Doctorate of Letters from Boston University, where he once (presumably) majored in geek makeovers. In case you were wondering, the honorary doctorate doesn't mean J passed any extra tests or skipped any classes in the last year or two; it just means BU are honouring his contributions to his field.

Joining Allard on the list are some lofty alumni, including Steven Spielberg and Celtics legend Larry Bird, both of whom also are due to receive honorary doctorates.

While we're glad to see J again, we're actually happier at the news of Bird receiving a doctorate of any kind, because it now means we might finally get that long-awaited basketball game sequel, Dr. J vs Dr. Bird.

Word Out! [BU Today, via Giant Bomb]

Zune is co-developing the show along with MEAN magazine.

So what scenes would you like to see reenacted by which actors? Besides Christopher Walken as Han Solo.

Technology Briefing [Seattle Post Intelligencer]

The company also confirmed to Kotaku that Chris Early, former general manager of Games for Windows Live, was indeed laid off. Ron Pessner, who comes from Microsoft's Entertainment and Devices Division, will be assuming his duties as well as other areas within Microsoft's Interactive Entertainment Business.

“Moving ahead, Microsoft will continue to invest in Windows as a first–class gaming platform through great Windows out of box experiences, our online gaming services including Games for Windows – LIVE, MSN Games, and Messenger games, and through new games for Windows developed by Microsoft Games Studios," a Microsoft spokesperson said. "Our Windows gaming service efforts will be led by General Manager Ron Pessner, who is joining Microsoft’s Interactive Entertainment Business. He comes from within Microsoft’s Entertainment & Devices Division.

"Working closely with Ron will be Dave Luehmann, a long time Microsoft games veteran and General Manager within Microsoft Games Studios, who will now be overseeing internal development and publishing for all Windows-based games.

Beyond these changes, we are not commenting on specific personnel issues at this time.”

Earlier today we wrote about a possible reason behind the high number of lay offs in the Entertainment and Devices division, which includes Xbox 360. It looks like maybe Microsoft is trying to consolidate some of those management positions.

"Given the economic environment out there, obviously we're being impacted, like everyone else," said ESPN executive Rick Alessandri.

Among the sponsors to drop out: Zune, TV maker Olevia and 20th Century Fox.

Playstation's sustained sponsorship meant that the X Games got a Playstation tent with playable LittleBigPlanet levels created by some of the games' athletes including Sarah Burke, Tanner Hall, and Louie Vito.