At its core the feature is eight way group voice chat. It works over all Xbox 360 experiences - all existing games, all new games, the dashboard, movies, media center, everything you can do on the console. The members of your party can each be in a different experience.
There's one button in the guide that allows a player to send game invites to everyone in his live party.
It is not a replacement for in-game parties that a number of triple-A titles have," he admitted. "Live party is about having a social connection prior to entering that game's party."
Essentially, when you start a new game Xbox Live will keep checking to see if you have friends you can invite, and it will also query your party members to see if they are playing games you could join.
For example, a message might come up on starting Uno Rush that "other members of your Xbox Live Party are playing Uno Rush. Would you like to join them?"
There will also be an option to "invite party to current game," if applicable, which will quick launch "any game on your hard drive, memory unit, or disc in the tray.
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