Seems like LIVE is extending itself to MSN Messenger. A new update for Xbox LIVE will integrate MSN Messenger within your Xbox LIVE account. MSN Messenger will allow you to see your friends list on LIVE and who is gaming. It will give you alert updates, and game invites. The alerts will also be sent to any of your mobile devices that have MSN capabilities, email, or anything MSN. If you want more info check out Xbox.com.
