The newly updated Xbox One, will ship with a host of new features including, a more accurate Kinect that’s always on, the company is now sharing more about the newly revamped Xbox LIVE that will debut alongside the console.

In a blog post on Xbox Wire, Microsoft elaborated on many of the Xbox LIVE enabled that the console will have. These features include an upgraded version of automatic matchmaking system called ‘Smart Match’. This new version of match making will allow the service to estimate waiting times and group users based on it’s calculations. It will also match users based on their “reputations”.

Xbox LIVE Achievements will grow to encompass more gameplay over time and will automatically capture video of user’s “epic moments”. Achievement capture will be made available in addition to Game DVR , a way for users to capture all of their video from their favorite games and upload it to the cloud. Whether that’s SkyDrive or some internal Xbox LIVE save area is still unclear. Users will also be able to edit that video using tools provided by Xbox as well.

Game developers will also be able to offload computations and processing to Microsoft’s Azure cloud computing platform. In theory, this would allow for the creation of larger of more complex games that don’t overly tax the hardware in user’s living room. According to Microsoft, users will still be able play games that rely on Azure if their console goes offline, though the company offered no details on it.

The company also says that it will build SmartGlass functionality into Xbox LIVE so that users can play multiplayer games and enjoy entertainment using a SmartGlass powered device. SmartGlass is currently available on Windows 8, Windows Phone 8, iOS and Android.

This new Xbox LIVE might be considered a mixed bag for users who’ve already heavily invested in the ecosystem. While achievements, Xbox LIVE accounts and Xbox LIVE Gold subscriptions will be able to travel between the Xbox 360’s Xbox LIVE and the new service, users won’t be able to play Xbox LIVE Arcade games that they’ve already purchased on the service.

Lastly, this new Xbox LIVE will allow the Xbox One to effectively replace the user interface and guide of a user’s cable box. Users will be able to navigate the entirety of their cable selection depending on what provider the use.

Microsoft plans to detail more about Xbox LIVE and the Xbox One at E3 in June. The Xbox One will arrive on store shelves sometime this year.