An unexpected by-product of the latest dashboard update is that Microsoft has confirmed they are retiring the Xbox Live versions of the Facebook and Twitter apps that it launched back in late 2009 as part of its social media tools for the Xbox 360.

All is not lost, however, as Microsoft says that users can access both Facebook and Twitter on their Xbox 360 using the new Internet Explorer browser that was released for the Xbox 360 as part of the latest dashboard update.

While not all users are happy with the decision, it appears that Microsoft could care less, as they are giving users the Internet browser application with Internet Explorer for Xbox 360 that users have been wanting for a long time. In Microsoft’s defense, there is no real compelling reason to continue to develop the Facebook and Twitter standalone applications with the release of the browser. Resources would be better spent continuing to develop and improve the version of Internet Explorer for Xbox 360.

All Xbox 360 owners will be receiving the new dashboard as Microsoft rolls it out over the next couple of weeks.