The latest Xbox 360 dashboard update adds support for Microsoft’s Game on Demand service, but that isn’t all it does. According to Free60 project leads Felix Domke and Michael Steil, this update stealthily patches up a security hole that allows execution of unsigned code.

Apparently, “a complete end user compatible hack has been in development for some time” and will be distributed across public channels shortly according to the two devs. That translates to homebrew access for 360 owners who haven’t upgraded to the latest firmware.

Should be interesting to see how things develop. For those unaware, the last known Xbox 360 exploit was limited to an older kernel build that majority of folks already had upgraded past. Not for the technically squeamish, it also required users to connect to their 360 via serial port and have a copy of King Kong. This time around, it sounds like more people will benefit.

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