Netflix on Xbox 360 and fall's revamped Dashboard / Guide details

US Xbox 360 got some huge news today in Microsoft's new partnership with Netflix, but the Dashboard's got us pretty damned excited, too. We got a chance to sit down with Microsoft, including Shane Kim, VP of Strategy and BizDev for Xbox. Here's what you need to know:

Netflix

• For now, Netflix will only stream in about-SD resolution.
• As Netflix transitions to HD, Microsoft said it stands to reason that streaming HD to the Xbox should be feasible. (Read: eventual.)
• Netflix will be for Xbox Live Gold members only, so you'll be paying that $50 per year if you want it.
• Netflix video sharing ONLY works with other Netflix / Xbox Live Gold subscribers. You can't share video with a Silver member, or who doesn't subscribe to Netflix.
• Microsoft doesn't seem to have concerns about redundant content between Netflix and XBLM, or Netflix cannibalizing XBLM sales. Makes sense -- if you had content available to rent or stream with Netflix, you probably weren't going to pay to rent it on XBLM anyway.
  

Xbox Dashboard / Guide and Live

• "No functionality goes away" in new Dash -- so you won't be missing anything you have now.
• Microsoft's Shane Kim says the company has "no plans to create a [Sony] 'Home'-like environment. ... It's about delivering base functionality at the service level." So it sounds like the avatars won't have a Home-like virtual theme-park to run around in.
• No comment was made about Xbox price drops or how long it will take to get to the all-important $199 price point.
• There will be no increase in your number of Xbox Live friends. Psh.
• Don't like the new Dashboard look or avatars? Sorry, sucka, it's a mandatory update. Hey, at least it's free.
• Microsoft didn't have any comment on what it intends to do about the whole modded controller thing.
• The content Marketplace will be overhauled and revamped to ensure it's easier to navigate and much more scalable for the huge amount of content it's got.

[UK31337 @ Jul 14th 2008 5:16PM]

I'm guessing all this fancy Netflix stuff is US only then... so much for updates if Europe has to keep bending over.

[Derbeste @ Jul 14th 2008 5:20PM]

And how did you arrive at this conclusion, Thomas?

[Esat Dedezade @ Jul 14th 2008 5:30PM]

Europe always get screwed over.

[webster1990 @ Jul 14th 2008 6:11PM]

@ Derbeste
Netflix isn't available in the UK in the first place so it would seem odd for it to only be available over XBL

[mike @ Jul 14th 2008 6:56PM]

usa ftw!

[Jonathan @ Jul 15th 2008 7:58AM]

...and Canada?

I'm surprised the list that begins with "here's what you need to know" doesn't contain any information about geographical regions.

[Dean @ Jul 14th 2008 5:20PM]

do you need to pay for netflix and xbox live gold? or is this a new perk to a gold membership?

[Derbeste @ Jul 14th 2008 5:23PM]

You'll need to have accounts with both.

This basically merges the two and gives you another way to access your netflix account without having to sit in front of a computer with your honey (or wait a day for mail) to enjoy snuggling with a movie.

In short...it's MS's answer to blu-ray. It's their investment into digital distribution which they believe will trump any optical disk in the long run (especially as netflix goes HD).

Personally...I think they are right.

[donkamero @ Jul 14th 2008 5:24PM]

That was already answered in the post, Dean. You need both a Netflix account and xbox live gold.

[AJ in the East Bay @ Jul 14th 2008 5:26PM]

I would go with your first question being correct. Like the Roku box, it doesn't work unless you pay for an $8.99+ subscription anyway. I don' t see Microsoft giving Gold Membership dollars to Netflix, and Netflix needs subscription money to operate anyway.

[omar @ Jul 14th 2008 5:21PM]

Aww I thought they were going to surprise us and release it soon. I got so excited too :(
I hope it does not take more than a few months till it comes out else I may explode with anticipation.

[Erik @ Jul 14th 2008 5:22PM]

X-box isn't a big enough market. There's only 13 million out there. Not a big deal. I'll take the low rank for telling the truth.

[Moorio - XBL: peacebyanymeans @ Jul 14th 2008 5:25PM]

Only 13 million?

That's still a lot of people.

[AJ in the East Bay @ Jul 14th 2008 5:35PM]

1) 13 million consoles

2) $50 yearly gold membership for a good portion of them

3) Deduct operational/advertising costs

4) Profit!!

[Erik @ Jul 14th 2008 5:52PM]

what I mean is that it can't compete with iTunes... Which is it's goal.

X-box reaches 13 million. A very good number, they have done good.
But iTunes reaches over 400 million viewers. I'm surprised netflix tried this honestly.

But that's cool for x box ppl. Rock on

[coffee @ Jul 14th 2008 5:57PM]

Netflix has roughly a 7-8 million membership, and without much work or expenditure, can expand that quite effectively this way. Even a 5% increase in memberships would be huge.

Microsoft saw what the PS3 did to help Blu-Ray succeed, and they're not stupid. A mutually beneficial package means more value for Gold subscribers, and more opportunity for Netflix. This adds to both company's portfolios.

[Paul @ Jul 14th 2008 6:09PM]

Wow... Could you be more wrong?

Don't think I've ever paid for anything in iTunes even though I have an iPhone and iPod nano,

However, I have rented movies on my Xbox, just so much nicer on my TV then on my iPhone

[Nohone @ Jul 14th 2008 6:22PM]

There are millions fewer Blu-ray players out there, and yet many people around here think that it is a success.

There are millions fewer AppleTV devices out there, and yet many people around here think that it is a success.

But attach a Microsoft name to it, and suddenly it is a failure?

[axemt @ Jul 14th 2008 6:27PM]

@ Erik

I have to agree with you. Anything that represents less than double digits percent it's not big deal. What's Apple OS world market share these days? Last time I heard it was 3.2% or something.

[Erik @ Jul 14th 2008 6:29PM]

LOL@Paul
I was talking statistict... Facts... Real stuff.
Not your personal buying record.
Apple releases it's sells
Sorry dude :)

[Alvin @ Jul 14th 2008 9:43PM]

if by "statisticts and facts" you mean making up numbers, then sure, you're not an idiot. show me the statistics and facts that prove that there are 400 million itunes customer. last i checked, there are 50 million itunes customers (probably just in the US, but i doubt that there are 350 million more made up by the rest of the world)

http://www.apple.com/pr/library/2008/04/03itunes.html

[MMalecky @ Jul 15th 2008 7:13PM]

Stop spelling "its" wrong.

[Gadget Chick @ Jul 14th 2008 5:22PM]

cant wait for the update i love the new dashboard. haven't been this excited about a keynote since January 07.

[Mam00th @ Jul 14th 2008 5:39PM]

Quite frankly I didn't particularly like this keynote. Maybe it's because I don't have an Xbox360 but as far as I remember, I always enjoyed every E3 press conference.

Am I the only one who think they shouldn't have done this avatar thing?

[wout @ Jul 14th 2008 5:23PM]

wow 3 comments??? suppose microsoft is seriously yesterday's news.

[Rob @ Jul 14th 2008 5:24PM]

Gold only = Fail. And also not free, which MS has been claiming.

[Derbeste @ Jul 14th 2008 5:26PM]

Phillosophically speaking....nothing is free.

But if you have a gold membership...and a netflix membership....you CAN access your netflix membership through your gold membership for no extra charge.

That's not a lie......but it's not a give away either.

[Kyle @ Jul 14th 2008 5:30PM]

Yeah, how dare they provide a useful service to their paying customers. I mean, just because I don't want to drop a whole $50/year shouldn't mean I'm locked out of a hugely desirable service. Those heartless capitalists...

[Mam00th @ Jul 14th 2008 5:35PM]

I didn't vote you down because you wrote MS correctly, not M$ like those hip microsoft hater.

[Evan @ Jul 14th 2008 5:46PM]

I though the $50 was to pay for online gaming servers. I don't see why Microsoft should charge $50 simply for allowing people to access Netflix's servers.

[LocalToast @ Jul 14th 2008 5:55PM]

People boast about PSN being free, but did you hear that they're putting advertisements in games now? Nothing is really free.

[Tyler Ransom @ Jul 14th 2008 6:06PM]

MS also stands for multiplesclerosis or something.

[TrueDis @ Jul 14th 2008 6:13PM]

I agree, this sucks. I was considering buying an Xbox because of the media capabilities, not because I care about online gaming. I'm certainly not paying $50/yr to not have to hook up a computer to my TV to watch Netflix.

[dvsbstrd @ Jul 14th 2008 5:28PM]

;_;

I'm going to have to have some quality time with my classic dashboard before they take him away.

On the plus side, it looks like the 360 still has some life left in it.

[Alex Land @ Jul 14th 2008 5:31PM]

What 'modded controller' thing? Did I miss something?

[spartan112g @ Jul 15th 2008 10:48AM]

On ebay, you can buy a "rapid fire" mod which allows you to make all weapons automatic in games. The G3 in CoD4, Battle Rifle in Halo 3, etc.

[Bandit5317 @ Jul 15th 2008 7:16AM]

I'm pretty sure they're referring to controllers with built-in 555 timers or ICs with the purpose of making the controller think your pressing a button very rapidly. Like the old NES turbo buttons, except the only way to get one of these is to build one or buy one that's already been modded. The most common use for them is telling the right trigger to fire many times a second when you press an extra button that you add to the controller. The result is just about any first-person shooter games you play will fire semi-auto weapons like they're fully automatic and weapons that are already fully auto fire faster. Due to the speed at witch it is registering the button presses, it completely skips the normal forced-lag in between firing. Basically what you end up with is a fully automatic Desert Eagle in COD4 among other weapons.

[Mike Fletcher @ Jul 15th 2008 8:33AM]

@Bandit5317
Thanks! I was so confused.

Anyone still confused i found this tutorial about what he was talking about
http://forums.xbox-scene.com/index.php?showtopic=643928

[Brent @ Jul 14th 2008 5:32PM]

What is the "modded controller thing"? I haven't heard of this.

[sygyzy @ Jul 14th 2008 5:40PM]

Modded controller?

[Evan @ Jul 14th 2008 5:34PM]

Once again Microsoft ignores the rest of the world and launches something in the U.S. only.

[Mam00th @ Jul 14th 2008 5:42PM]

Yeah because Netflix are a offering their services worldwide too.

[Viakenny @ Jul 14th 2008 8:33PM]

and NetMovies (a Netflix-like movie rental service here in Brazil) doesn't have a streaming video service.

[donkamero @ Jul 14th 2008 5:35PM]

Well, Netflix is only available in the US normally, so I assume that's how he came to that conclusion.

Whatever happened to the BT vision thing that was supposed to be happening in the UK? That was a pretty similar idea?

[UK31337 @ Jul 14th 2008 5:52PM]

People in Europe are annoyed enough that MS are deliberately picking US only content providers... we've got the Video Marketplace in the UK but no British TV channels are available on it (we only get a pretty limited selection of bad movies), while in the US Microsoft throws money at signing up about another 10 providers.

It's not fair especially given we pay far far more for Xbox 360 games and accessories than other regions, yet get nothing in return.

[coffee @ Jul 14th 2008 6:01PM]

You pay more for taxation, not for product. It all costs the same when they load the boat in China, just gets tariffs on the way to wherever.

[HalfJoey @ Jul 14th 2008 5:35PM]

It would be nice if accessing your Netflix rentals on Xbox did not require an Live Gold membership...

[AJ in the East Bay @ Jul 14th 2008 5:39PM]

That would be sweet, but Microsoft has to make some money out of this. If you were paying Gold membership anyway then this is not a big deal. Otherwise this is one extra perk of the Gold membership. Microsoft shareholders won't mind ;-)

[Cabrill @ Jul 14th 2008 5:35PM]

Hey, when the new Dashboard rolls out what happens to all the themes people have paid for? If it's going to look entirely different I can only assume the existing themes will be incompatible, but how are they going to justify this mandatory removal of paid content to their customers?

[drumdbeat @ Jul 14th 2008 5:44PM]

That's a good point..... Though i can't see a reason that you couldn't change the theme... there does seem to be some extra tabs available for them to work in....