Looks like Microsoft is hoping to convert its Xbox Live service into a full fledged social networking service.
The upcoming Xbox 360 Fall Dashboard Update would add some new features which would enable gamers to see friends of their contacts.
This would let them find more gamers to play with and expand their own friends list.
As per available information, the update would result in the all friend lists becoming public. Gamers would be allowed to change privacy settings on their contact list.