Xbox Live will gain Games on Demand on August 11th along with an Avatar Marketplace and Netflix update.

The Games on Demand will start off with more than 30 games including popular titles such as Bioshock, Mass Effect, Lego Star Wars, Assassin’s Creed and Sonic the Hedgehog.

The Netflix update will give the ability to watch movies or TV shows with others over Xbox Live and allow users to add content to their Instant Queue directly from their Xbox 360.

Still scheduled for fall is an update that will bring 1080p streaming video and add support for Twitter, Facebook, and Last.fm.