Microsoft believes it has solved the majority of problems caused by the rollout of the new Xbox 360 dashboard this week.
Having installed the new dash, multiple users complained of issues like game freezes, loss of content, and problems updating avatars.
"After a long night of troubleshooting and tweaking by the team, I'm happy to be able to say that your experience on LIVE will be greatly improved today," Microsoft said on the Xbox Live Operations Blog.
"Yesterday a number of people were having problems downloading the update, updating the avatars, and re-downloading previously purchased content. The changes that went in over the last 24 hours have made a world of difference, and we'll continue to watch closely throughout the day."