Microsoft to stream Netflix movies on Xbox 360

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Earlier this morning, Microsoft unveiled an Xbox 360 with triple the storage space – from 20GB to 60GB – but the same $349 price tag. Now, the software giant has revealed some additional details about future updates to its gaming console, including a long-rumored partnership with Netflix that will allow users to stream thousands of movies over the Internet.

The video streaming service is expected to launch as a software upgrade for the Xbox 360 and offered at no additional cost to Netflix subscribers who also hold Xbox 360 Live Gold memberships. The agreement kicks off in “late fall,” and will bring 10,000 new video titles – movies or TV episodes – in standard definition to the Xbox Live online service.

In addition, Microsoft also announced a revamped dashboard for the Xbox 360 and an avatar system. The new dashboard interface is designed to be simpler and more streamlined than the current dashboard, replacing the current blades system with 3D slides. As for the new avatars (which is Microsoft’s answer to Nintendo’s Miis), it is a total-integration system where every user has his own character that can be customized and used in games. You can read more Xbox 360-related announcements in this Microsoft E3 2008 press conference wrap-up.

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