With Xbox LIVE nearing it's 5th Birthday, and subscribers numbers breaking the 8 million mark - Microsoft is celebrating by unveiling new features for the service.

To kick things off Microsoft will be giving away one free Xbox LIVE Arcade game on Nov 15th.  To take advantage of the offer you'll have to make sure you access LIVE and execute your download between 12:01 a.m. PST on Nov. 15 and 11:59 p.m. PST on Nov. 16.

In addition to that - all active members who joined the service in 2002 will receive 500 MS Points for free!

Lastly - but not least - starting on December 4th, 2007 - Xbox LIVE will receive a system update with a host of new features and enhancements including the ability to download full Xbox games (not X360) through the new Xbox Originals program.  These games will cost about 1200 MS Points per game - not exactly a steall but if you want to catch up on classics like the original Halo or Psychonauts then this could save you a trip to Gamestop.

What I'd most like to see added is the ability for Microsoft to track ALL your purchases - beyond the current imposed limit - and allow you to delete and redownload at will any and all of your purchases.  Valve does exactly that with STEAM and with hard drive space on these consoles become a valuable commodity - for those without Elites - they will need to do shifting of files as large downloadable content files, like Xbox Originals, become the norm.