Yes the verdict is in and Toshiba has folded in the world of high definition format wars.  Blu-ray wins and HD DVD becomes the betamax and laserdisc of 2008, but what happens to Microsoft’s Xbox 360 console which only offers a HD DVD add-on drive?  Well the rumors are in and according to MSNBC Microsoft might be partnering up with Netflix to deliver On-Demand movie access via Xbox Live. 

Regardless of whether you hate Microsoft and live for a Playstation 3, the reality is that Xbox Live simply is the best online forum for online gaming and using this network to deliver movies compliment of Netflix sounds delicious.  The biggest failure in the Playstation has always been online gaming which has been the focal point of Microsoft since their Xbox live service began back with the original Xbox and has matured into a much more advanced system than Playstation can ever hope to match. 

So where exactly do the rumors that Microsoft and Netflix will enter a partnership to deliver on-demand movies via Xbox live?  Well the rumor has existed for nearly a year when CEO of Netflix, Reed Hastings joined Microsoft’s board of directors.  With the demise of HD DVD and the possibility of PS3 sales since buyers no longer fear having an obsolete video format and now have both a legitimate gaming system and high definition video player, Microsoft needs to take action.  Set-top boxes capable of delivering streaming HD video were the talk of the town at CES 2008 and the industry is preparing for the next generation in high definition which ignores formats and focuses on instant delivery in full high defintion 1080P.

We will go ahead and sit back and continue to speculate about whether this partnership will materialize or whether Microsoft will jump ship and find a way to slap a Blu-ray add-on drive to the Xbox 360, but with the strength of Xbox Live and the superior interface he Netflix deal has substantial merit.

Read on [at] MSNBC

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