Coming in the fall Xbox 360 update: Netflix! Yes, Xbox 360 owners who are also Netflix subscribers will be able to stream movies available for online streaming now straight to their consoles. You can also share your Netflix movies with friends via your Xbox Live party so you can watch stuff together, although you'll need a Gold account. Here's hoping you Xbox owners didn't shell out for a Roku box, as it's about to become useless. Oops! But still, awesome. [Gizmodo's E3 Microsoft Liveblog]
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@snitch29: 10,000 movies is a pretty large amount of content, especially when Apple's is stuck at around 1,000. The difference is that NetFlix is showing primarily older titles, where Apple is getting new releases from the studios that worship from the altar of Jobs.
That said, with announcements like this, the Roku player, and possibly PS3 support around the corner, you can bet the studios are giving this a second look. If NetFlix can get a sizable audience for their streaming products, you can bet that the non-worshiping studios will become chummy with NetFlix in a hurry. Personally, I think NetFlix has the edge in this battle, primarily because the non-worshiping studios are willing to do just about anything to keep Apple from taking over their market, even if it means handing the market to NetFlix.