Following the launch of its new Xbox dashboard earlier this month, Microsoft has issued another update to the Xbox LIVE service, introducing eight new video channels to those in Australia, Canada, Europe, and the United States. Users in the U.S. will now be able to access channels such as Dailymotion, VUDU, and UFC; while those in the U.K. will get 4oD and Demand 5.

The update boosts Microsoft’s bid to make its console a home entertainment must-have, with features that allow it to offer more than just gaming. Updates like this also gives it a huge advantage over rivals like the PlayStation 3, which boasts services like Lovefilm, BBC iPlayer, and ITV Player here in Britain. The full list of new channels includes:

• 4 on Demand (4oD) [UK]
• ABC iView [Australia]
• Dailymotion [34 countries]
• Demand 5 [UK]
• M6 [France]
• MSN Video [France]
• UFC  [US & Canada]
• VUDU [US]

The Xbox 360 has been incredibly popular in recent months, selling a whopping 1.7 million units in the U.S. alone during November. In comparison, Sony’s PlayStation 3 sold just 900,000 units, according to Boy Genius Report, while the Nintendo Wii managed only 860,000.

Microsoft has also been putting in a lot of effort to ensure the console is a huge success this holiday, with companion Xbox LIVE apps launched for iOS and Windows Phone devices, and a new Xbox.com homepage.

Have you got the new Xbox LIVE video channels yet?

[via The Next Web]