Microsoft’s showing at E3 2009 was dominated by its new motion-sensing device. But the company also announced some innovation in the online video market, including the unveiling of a new Zune video marketplace capable of streaming 1080p full-HD quality content for the Xbox 360 console.

Games Consoles

I’ve been banging on for a while now about the importance of video games consoles in getting online video into the living room. That’s because I firmly believe these Internet-connected devices are key to getting quality streaming content onto people’s televisions rather than only on computers as it generally is at the moment.

We’ve already seen a fair few advances in this area. Both the Wii and PS3 are able to provide users with access to Web-based television services such as the BBC iPlayer, Joost, and Hulu. While the Xbox 360, which has no Web browser capability, has Netflix and now the Sky Player providing both downloadable and live streaming video.

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Sky Player is BSkyB’s foray onto the Web, enabling subscribers to access Sky programming on their computer. And now, thanks to a deal between Microsoft and BSkyB, their Xbox 360 as well.

Games consoles are ready-made set-top boxes just waiting for online video content to be added to them. All three of the current-gen home consoles, the Xbox 360, PS3, and Wii, can be hooked up to the Internet and that feature can easily be used for streaming video as well as the intended use of online gaming.

Console Content

Each of the three consoles has seen some movement of late on video content being added. The PS3 is probably in the best position because its built-in Web browser means the Sony console is able to access Hulu, the BBC iPlayer, Joost, and any other streaming video service available on the Web. Xbox 360 owners instead have to rely on applications being added to their console’s dashboard.

It has secured quite a lot of content though. Xbox 360 owners in the U.S. have access to Netflix’s ‘Watch Instantly’ playlist, although they’re not alone. It’s rarer these days for a set-top box or Internet-enabled device NOT to have Netfix integration. Thus proving the company’s commitment to video on-demand.

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Bandwidth throttling is a problem usually brought to bear by overzealous ISPs protecting their bottom line. But could it be that the video streaming companies are throttling themselves now in order to give preferential treatment to some?

Netflix Overstretches

Netflix is making huge headway in making the idea of digital downloads and streaming mainstream. By making its ‘Watch Instantly’ service available on all manner of devices, it is getting into millions of homes in the U.S. But is it overstretching itself?

Netflix is now available not only on PC, but on a range of devices including the Xbox 360, the Roku box, a hybrid Blu-ray player, and even a new range of Internet-enabled televisions. But in order to serve these different devices, is it throttling some aspects of its streaming service?

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With the announcement of a collaboration between Microsoft and Universal which sees a new range of movies coming to the Xbox 360, can games consoles now be seen as an important driver in making online video a mainstream part of the living room?

Netflix U.S. Only

When the Xbox 360 recently got a makeover to the New Xbox Experience, Xbox Live users in the U.S. gained access to the full range of ‘Watch Now’ movies on Netflix. That’s over 12,000 titles that are now available to stream through the Xbox and onto your television.

Unfortunately, Netflix is a U.S. only operation, and so Xbox 360 users in Europe and elsewhere weren’t afforded such luxury. But now, those of us in the UK and Ireland are at last starting to get some titles filtering through. Paramount, Warner Bros., and MGM already offer titles through the system, and now another studio has climbed on board.

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Today saw the launch of the long-awaited New Xbox Experience on the Xbox 360. The Xbox Live service now includes the ability to stream content from Netflix.

The New Xbox Experience is an overhaul of the existing Xbox Live online service available to all Xbox 360 owners with an Internet connection. And Web video is now part of the deal.

Xbox 360 owners can now stream any of 12,000 movies and television episodes through their console direct to their TV. And it’s all free for existing Netflix subscribers and Xbox Live Gold members.

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There’s a small event going on right now in Los Angeles called the E3 Media and Business Summit, which is the place where Sony, Microsoft, and Nintendo, as well as a host of games developers unveil plans for the next year.

Today was the first day, and Microsoft was the first of the big three to show its hand. And one of the announcements means that Xbox 360 owners will soon be getting more access to online movie downloads.

This will be coming from Netflix, the online movie rental company, which is teaming up with Microsoft to allow Netflix subscribers, who also own an Xbox 360, to have access to its extensive catalogue through their consoles.

Xbox 360 owners already have access to some full length movies and television shows via Xbox Live, but now a deal has been done which will see original programming being launched on the service.

Xbox Live is Microsoft’s Web platform, exclusively available to Xbox 360 owners. Of the 18 million people who own the current generation console, 10 million have signed up for the service.

The service currently offers various different for sale, either by use of a credit card or redeeming points for participating in various Xbox Live activities.

Many games, including user created ones are available, as well as films like Saw and The Departed, and full episodes of TV shows such as South Park.

Original Programming On Way

Now, from a deal struck between Microsoft and Hollywood producer and talent agent Peter Safran, original programming will now also be heading on to Xbox Live.