Netflix to stream live on Xbox 360

Seattle PI | at | by Mike

Microsoft's video game unit has struck a deal with Netflix Inc. and tightened its relationship with a longtime Sony PlayStation ally in a bid to expand the audience for its Xbox 360 game console.

The pact with the movie-rental company will let Netflix and Xbox Live subscribers stream movies and TV shows online to their Xbox 360s, to watch on TVs, starting this fall. Microsoft will simultaneously overhaul the broader Xbox Live service, aiming for some of the populist appeal that has vaulted Nintendo's Wii game console to the front of the market.