According to Official Xbox Magazine, the next update for the dashboard will include a hell of a feature.
Downloadable Xbox games, for 1200 points(aka, $15). The list as of now includes: Crimson Skies: High Road To Revenge, Fable, Burnout 3, Crash Bandicoot: The Wrath Of Cortex, Halo:Combat Evolved, and my personal favorite of the list, Indigo Prophecy.
If you haven’t played Indigo Prophecy(also known as Fahrenheit) yet, do it. It’s an amazing adventure game based on QTE action sequences, and interactions using the analog sticks to replicate motion. While the storytelling gets a touch disjointed or jumps once in a while, it, and the and characters, are sheer genius, making the game a must own.
It remains to be seen if Fable will be the original or director’s cut, but hopefully the latter.
Now if only they’d add Beyond Good and Evil to the list, and give me some software compatibility for Steel Battalion. I can buy the Xbox-USB adapter myself, but damn it, I spent $200 on that game!
Big update! The latest news release puts Psychonauts on the list for full games. Good stuff, that.

November 13th, 2007 at 7:54 am
That’s pretty nice, might give them some more incentive to work on backwards compatibility and such. My 360’s 20 gig hard drive does feel more and more inadequate though.