How can I disable friend notifications on Xbox Live?

When a friend logs into Xbox Live, a notification pops up. This interrupts movies and games. Is there a way to disable the notifications?


Solution 1:

Yes. Go to Xbox Guide buttonPreferencesNotifications and edit the options. You can also set your Xbox Guide online status to "Busy".

Solution 2:

Apparently, this has changed. As of 11/8/13, it's now:

Xbox Guide button → Preferences → Notifications.