Xbox Live update goes live, stirs the pot

Microsoft today launched an update that added plenty of changes, new features and a slight controversy. First let’s get the controversy out of the way. Web sites around the world highlighted a passage touting a “Netflix exclusive” relationship, which Kyle Orland rightly pointed out was “nothing new” and not a big deal.

The “big deal” for bloggers was probably the fact that it felt like a “shut out” of other platforms like the PS3 and Wii. But having some exclusively doesn’t quite hold the power it used to because exclusivity is only a temporary state these days. In other words, Microsoft may have an exclusive relationship with Netflix for now, but that will inevitably change when Sony and Nintendo decide that Netflix is important and some deals get hammered out.

Now onto what new features you’ll find in this update. Games on Demand are now available, allowing Xbox 360 owners to pay to play top titles. The good news is that previously purchased downloadable content should work with any titles you pay to play. So, for example, if you bought Mothership Zeta for Fallout 3 and wanted to play it with your games on demand Fallout 3 game, you shouldn’t have any problems. The selection is pretty thin now, but more titles will be added every Tuesday, according to Microsoft.

The framework for a new Avatar Marketplace went live today as well, offering avatar gear, apparel and props. You won’t be able to buy anything today, but on August 13 you can start perusing whatever is available at its launch.

Netflix subscribers can now watch movies with friends and find new movies to add to their Instant Queue without much effort. The ability to watch movies with your friends is being called Party Watch, though this feature is only available with titles that support it. Other nNetflix related changes include improved playback and more information displayed to your friends when using Netflix.

Parties have gotten a slight tweak beyond the Netflix stuff; now disconnected party members will automatically be reconnected without user intervention and party invites have been streamlined to be.. well, less of a pain in the ass. No more navigating through multiple screens, say Microsoft.

Other improvements include user interface tweaks, better account management, new display options, user ratings for games and other functions of Xbox Live, improved friends list sorting and other minor tweaks and adjustments.

you can read all about it here. The promise of Twitter, Facebook and Last.fm integration is still there, but it won’t come until this fall. Will people even care about Facebook and Twitter then? Who the f**k knows. We’re a fickle bunch.

Microsoft E3 2009 press conference recap

Microsoft fired the opening salvo a day before the Electronic Entertainment Expo officially opens, revealing new social networking functionality, changes to Xbox Live, new clips from its key franchises - and those from third-party publishers - and revealing its way of doing motion controlled gaming. It was a pretty impressive showing that will set expectations for Nintendo and Sony’s events later this week. What follows is a brief rundown of the press event (check out this additional information, released after the press conference):

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Xbox 360 Game of the Year Bundle Detailed

If you don’t already own an Xbox 360 chances are you could also use Fable II and Halo 3, right? I mean why not? A new bundle, available beginning in May, will give you the chance to get those two games, along with an Xbox 360 elite for $399 USD. The bundle comes with the games, the system, one controller, a wired headset, an HDMI cable, 120 GB of hard drive space and a free Netflix trial.

Not too shabby. Look for the Xbox 360 Game of the Year Bundle next month - but only for a limited time. There’s no mention of an Xbox Live gold membership trial, but one would assume there is at least a month’s worth of that in the package.

Netflix Survey: Wii Streaming Service

A Netflix survey being present to some subscribers of the popular “by mail and Internet” DVD rental service may indicate some future plans of the service on platforms other than the Xbox 360, reports Joystiq. The survey asks participants to read a description of a Netflix product and to answer questions about it.

 That product consist of “Netflix Instant Streaming Disc” that users would put into their Wii, enabling them to stream an entertainment selection from its library of 12,000 titles. The disc would apparently have to be inserted in the Wii to use the service, but all the functionalities associated with Netflix streaming solution would apply: rewind, pause, fast forward, etc.

If nothing else the survey proves that Netflix would love to be able to break into the lucrative Wii space, but it doesn’t mean that the idea is a lock either… and if Netflix “is” considering streaming content via the Wii, what of the PS3? Wouldn’t that be an easier platform to get into to? We think yes, but there’s no survey for that.

There’s one other thing the survey proves: The Xbox 360 deal Netflix has going has certainly kept the company in the black in the early part of 2009. More deals mean more money.

Some Xbox Live Stats

While Nintendo may have beat Microsoft and Sony soundly in the hardware space in January, Microsoft wants you to think about something else: Xbox Live. Microsoft says that Xbox Live currently has 17 million members worldwide (though it does not differentiate between how many are gold and silver members make up this number). The company also says that one million members are now using Netflix to watch film and television on Xbox Live. Oh, and Microsoft mentioned that Xbox 360 sales in January were up 33 percent - though it wasn’t enough to come close to what Nintendo moved during the month..

On a side note, the company said that the Halo Wars demo has been downloaded by over 2 million members. The demo was released on February 5. Whether or not players will buy it when it is released is another matter, but early indications are that fans are going to give the game some retail love.

BlockBuster Eyes Rent-By-Mail Games Market

Look out GameFly, watch your back Netflix! BlockBuster’s rent-by-mail program will expand to include video games later this year, according to published reports. Blockbuster really seemed to have its head in the clouds when it came to the video game market, despite making tons of money for in-store game rentals for years. Why did it take them this long? We’ll probably never know the answers to that question, but it is good to see them finally waking up.

When this will happen is to be determined and the company has a long way to catch up to its rivals: Netflix has the added advantage of already being tied to the Xbox 360 and Xbox Live and GameFly has been renting games by mail for a very, very long time.

Netflix Deal a Huge Success, Says Microsoft

Microsoft said this morning that its deal with Netflix has proven to be a grand success with more than a million Xbox 360 users downloading the Netflix application via Xbox Live Marketplace since the deal was jump started in November 2008. Since that time, Xbox Live gold members have watched more than 1.5 billion minutes of movies and television shows. Netflix offers 12,000 movies and TV shows currently available on the Xbox 360.

This news comes as no great shock; in late January Netflix reported a 45 percent jump in profits for its latest quarter in part due to the Xbox 360 deal. The company also saw a 27 percent increase in subscriptions. While the Xbox 360 may have lost the DVD format wars, deals like this really hurt Sony’s plans to dominate the DVD market with BluRay. Why watch a disc when you can rent it online and watch it almost instantly?

Source: Venture Beat.