UPDATE - The fall Xbox 360 dashboard update, which will be implemented in time for Christmas, will enable users to download classic Xbox games and movies on demand.
Microsoft has confirmed that the update, scheduled for December 4, will allow Xbox 360 owners to download classic titles such as Halo, Fable, Crash Bandicoot and Burnout 3 via Xbox Live Marketplace for around 1200 Microsoft points per title. As time goes by, the platform holder reportedly hopes to make as much of the original Xbox’s back catalog of titles available to Xbox 360 owners as possible.
A movie-on-demand service similar to the US Video Marketplace will also be launched in Europe, although a solid start date for this service has yet to be confirmed. Effectively an online rental service, users will be able to download movies to their Xbox 360 hard drive. They will have 14 days to start watching the downloaded content. Once they begin watching the content, they will have 24 hours to finish it before it is automatically deleted from their hard drive.
UPDATE: A statement from Microsoft adds that Crimson Skies: High Road to Revenge and Psychonauts will be getting a second chance at life on the Xbox 360 as Xbox Originals. "This new service will launch with an array of blockbuster titles spanning the most popular genres from action-adventure to classic role-playing games," reads Microsoft's statement.
Pretty fucking pimp eh?