Microsoft's Xbox 360 summer system update has gone live for all Xbox LIVE members. It's a mandatory update.

The update is being rolled out worldwide over the next few hours. Company spokesperson Major Nelson also points these three points out:

• While you can browse and purchase Avatar items and full Xbox 360 games in the console with this update, the ability to add these items your Xbox 360 download queue from Xbox.com will be available this Thursday.
• Xbox LIVE integration with Twitter, Facebook and Last.FM will be available later this year.
• Zune Video Marketplace will also ship later this fall when it will replace the current Video Marketplace.

While Twitter, Facebook and Last.FM are forthcoming, this update brings Games on Demand, the Avatar Marketplace, new Netflix features. Read more about the update here.

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Update Now Available [Major Nelson]