Larry Hyrb, a member of the Xbox team, started tweeting shortly before then to say that the update was being delayed; no reason was stated. As of 3 p.m. ET, the update had still not gone live.
Hyrb has been updating his Twitter feed throughout the day, assuring followers that the team is working on it and to expect more news in the afternoon (Pacific time) on when the updates would officially start rolling out.
The hotly-anticipated update expanded the Xbox 360 into a multimedia hub with the inclusion of voice recognition, gesture controls, Bing search, television and social options.
The delay might tick off some customers, but it's not yet a disaster for Microsoft -- especially if the delay is to help smooth out and clean up the new interface before launch. Mashable will report back once the update has been officially released.
BONUS: A Look At the Xbox 360's New Interface