Wednesday marks a special day for Xbox 360 owners, as Microsoft will unleash the new interface they like to call "The New Xbox Experience."

The company took the Xbox Live servers offline earlier this morning in preparation for the console’s new interface, although Microsoft wasn’t clear on what the 45-minute downtime actually accomplished. But gamers impatiently waiting for the unique console dashboard only see the downtime as a step towards a revolutionary new way to interact with the hardware. The New Xbox Experience (NXE) update comes just in time for the always-lucrative holiday season, along with hot titles like Gears of War 2 and Fallout 3 hitting the market.

But the new interface isn’t just another update: it completely changes how owners interact with their consoles. The update is so important to Xbox 360 owners that one gamer - enlisted in the "preview program" - actually ripped his version of the update and released it onto Torrent sites; the NXE download could be installed via a USB thumb drive. But according to Major Nelson, those who installed the leaked NXE would discover their Xbox Live accounts disabled until November 19. Shortly thereafter, he turned around and said that those who install the leaked NXE won’t be allowed on Live at all.

According to Microsoft, NXE offers an interactive dashboard reminiscent of Windows Vista’s Aero interface. Vertical menus stand upon a virtual floor, allowing the gamer to switch from one to the other easily, moving between the games library window, the photo library window, the video library window and so on. Gamers will be able to create custom, 3D avatars much in the same manner as The Sims (the Personality Plus tool), choosing clothes, hairstyles, pants and more. Netflix also has a space in the NXE dashboard however the "program" is not installed by default.

Sony is also working on an interactive interface for its fledgling PlayStation 3 console. Entitled PlayStation Home, the virtual environment follows in the footsteps of "Second Life" and offers console owners the ability to create a personalized avatar, move into an apartment, and enter a thriving world filled with other PlayStation 3 owners. Gamers can gather to watch movies in the Theatre, play games in the Arcade, shop for items in the Mall and even visit specialized areas based on PlayStation 3 games (such as Drake’s Fortune and FarCry 2). PlayStation Home is expected to hit open beta status sometime this holiday season.

Nintendo plans to add a few updates to the Wii System as well this holiday season, although not quite as dramatic as Microsoft and Sony’s consoles. The updates include the Wii Demo Channel, an overhaul of the WFC friend system and possibly DVD playback via software. The Wii Speak Channel hit the Wii dashboard just yesterday, three days before Microsoft unleashes its own dashboard overhaul. However, as reported earlier today, Nintendo’s Wii Speak microphone comes with a one-time activation code, permanently attaching it to the original buyer (meaning the peripheral cannot be sold used). Additionally, Nintendo’s holiday line-up is surprisingly lackluster compared to last year, featuring only one or two high-profile games including Animal Crossing: City Folk and Sin & Punishment 2.

Still, Microsoft seems rather pumped at the upcoming release of NXE. "When the New Xbox Experience launches, we will be inviting the whole world to play," said John Schappert, Microsoft’s corporate VP for Interactive Entertainment, referring to the new Xbox Live Party feature included with the update. Xbox 360 owners seem rather pumped as well, and they have less than 48 hours until the New Experience takes hold of their Xbox 360 in a brand new, exciting way.