NXE stands for New Xbox Experience and is the new update to Microsoft's Xbox 360 on Xbox LIVE.
It completely changes the dashboard and has avatars, gives you the ability to delete games off your played games list with 0 achievements. You can chat up to 7 other people in a new 'party' system, private chat still exists but the party is for Gold subscribers only. You can install games on to the 360's hard drive to improve loading times and make reading the disc quieter (but you still need to disc in the drive to prove you own it).
Live user 1: This new NXE xbox live update is cool!
Live user 2: No it sucks!
Live user 1: Oh fuck off stop complaining! Fucking noob!
Stands for New Xbox Experience. Literally a whole new layout of the Xbox 360 dashboard and the inclusion of Avatars and the ability to add games to your hard drive. Such as Gears of War 2. Also added was the marketplace to your dashboard and The Xbox Guide, allowing for a lot more advertising. In addition, a newer improved party system enables up to 8 players of different games or similar, if you so choose, to chat and interact.
all these things were not exactly available before the release in... was it November?
"Man that new "NXE" thing is kinda' Lame"
"My avatar looks so gay! Why are his pants so tight!?"
"since when did xbox get so gay looking?"
Short for "New Xbox Experience"
"Did you download the NXE yet?"
"Damn, I need to get Live again"