Thanks to Game Watch, Famitsu, and Joystiq we now have some information on the latest update coming to the Xbox 360 later this year.

• Xbox Live Arcade has apparently been replaced with the Game Library which, when opened is virtually identical to XBLA, but adds horizontal sorting broken down by different filters (similar to those “on demand” channels on cable television and Sony’s XMB design).
• “Marketplace” top level has been reorganized into “Featured Content,” “What’s New,” “Game Store,” and “Video Store.”
• The gamer Profile now includes a “Personal Profile” text-field, allowing upwards of 1000 characters to be entered to describe yourself.
• Demos will be deleted from the “Played Games” and Gamercard lists.