Microsoft rolled out a slew of new social features for the Xbox 360 today, making its already popular Xbox LIVE network a much more comprehensive source of entertainment. The upgrade lets people post status updates to Twitter and Facebook, view and share photos, and even stream music from Last.fm. The company first told gamers the features were coming back at E3; now—four months later—comes news that PS3 owners will also get Facebook connectivity, including status updates and automatic posts of their gameplay, when Sony (NYSE: SNE) launches its next software upgrade.

But more about what has come to the Xbox 360: It’s also the launch of the new Zune-branded video marketplace. Previously, Xbox 360 owners had to either sign up for Netflix, or wait to download movies and TV shows; the Zune marketplace lets them stream more content instantly—including HD video—and watch simultaneously with friends.

Marc Whitten, Microsoft’s GM of Xbox LIVE, told us that the company had been renegotiating its content licensing deals to boost Xbox LIVE’s streaming capabilities. The new setup also lets up to seven people in different locations view their Xbox LIVE avatars together on the same screen while watching a movie; voice chat also adds to the “communal” viewing experience.

Lastly, the upgrade includes media content from MSNBC and The New Yorker; Microsoft (NSDQ: MSFT) launched a new channel within Xbox LIVE called “News and More” that pumps in a regularly-updated stream of news, arts and entertainment-related content.