i4u.com writes: "Microsoft announced yesterday at the E3 2008 briefing a partnership with movie rental service Netflix. Xbox 360 Xbox LIVE Gold members who are also Netflix subscribers can this holiday season instantly stream movies and TV episodes from Netflix.
This pretty huge, as Netflix is largest online movie rental service in the world. With the exclusive deal Microsoft gives the Xbox 360 a pretty strong media presence in the living room, despite lacking Blu-ray support.
For those with limited broadband connectivity the Xbox 360 Netflix deal is of course not adding to their experience. A disc based movie playback is still important in my opinion.
Later today Sony has its turn to counter the Xbox 360 Netflix deal in their E3 2008 press-conference."