(((interference)))
Veteran
I don't think he's talking about downloadable updates to game code. He's referring to the fact that right now games made for certain "firmware" versions currently require that firmware version to be installed in order to run. Each game ships with that version so that it can be installed in case the user hasn't already. With the Game OS already self contained within the game package, that's not necessarily the case anymore. Of course if the game relies on a specific App OS version, then that would need to be separately updated. But the Game OS shipping version would now be independent of that.
Ok, so I asked about your and Grall's VM questions and got this reply:
Title updates copy into the VM. It has a special structure designed for that. The rest of the "OS" as it is, is almost the same as they have in the 360 today; all 360 games ship with the OS libs linked into the game (that's the XDK you compile against).
The game VM expands that a little to also include the drivers that talk to the host. It's a few tens of megabytes, and should load in well under a second. Since a VM is partly a memory image, it loads as fast as you can copy that data into memory.