The E3 Media and Business Summit this year was Microsoft's choice of setting for unveiling a new idea for the Xbox 360. In partnership with Netflix, the largest online movie rental service, Microsoft offers Xbox 360 users the possibility to instantly stream movies and TV episodes from Netflix to their TVs via Xbox 360.

The service will include over 10,000 movies and TV episodes and will be available to Xbox LIVE subscribers for no additional cost, the Redmond-based company unveiled. The launch of the new service is scheduled for late fall.

Microsoft promised to deliver an unprecedented entertainment experience for the Xbox 360 customers, at the comfort of their own living room. Together with the Xbox 360 LIVE Marketplace Video Store, the Xbox 360 will beat any other TV-connected device for movies and TV shows on demand, the company said.

This fall, Microsoft wants to make it big, by also launching Xbox LIVE Primetime, with TV shows and movies from NBC Universal, SCI FI Channel and USA Nework domestically and Constantin and MGM internationally, as well as blockbuster games: “Lips,” exclusively on Xbox, “Rock Band 2,” exclusively on Xbox, “Scene It? Box Office Smash,” the revolutionary movie trivia game, “You're in the Movies” and “Banjo-Kazooie: Nuts & Bolts” available exclusively on Xbox in November.

In addition to that, some of the most anticipated titles in 2008 will also become part of the Xbox experience starting this fall: “Final Fantasy XIII” with its latest cutting-edge technology, “Galaga Legions”which will debut exclusively on Xbox LIVE Arcade in 2008, “Geometry Wars: Retro Evolved 2” also exclusively on LIVE Arcade. This holiday season, Xbox fans will be able to warm up with some exclusive GTA IV content, “Gears of War 2,” “Halo Wars,” “Resident Evil 5,” “STAR OCEAN: The Last Hope” and “South Park” - coming up in 2009.

As Don Mattrick, senior vice president for Interactive Entertainment Business at Microsoft, declared it a “new age in entertainment” with the Xbox as “the heart of the living room.”

“This year more than any other, Xbox 360 has something for everyone – whether you love playing games with friends or are simply looking for the best in entertainement,” Mattrick said.