Netflix and Xbox 360 – It’s a Deal

If you’re a Netflix subscriber and own an Xbox 360 you’ll be able to watch the entire library of Netflix programming on your console. This deal, recently announced at E3, puts Microsoft in a great way in terms of being the console to buy for multi-media entertainment against its Rival Sony.

While the Wii can’t even play a DVD, Sony holds a lot of power of its Music (having its own labels helps) and its ability to play Blu-Ray movies. Microsoft’s HD-DVD player DVD player doesn’t handle high definition movies, although most new consoles have HDMI and all the high definition goodies ready to go.

Again, this won’t cost current Netflix subscribers any additional cost, “and movies and TV shows can be shared with the avatar-based community called Live Party, just announced earlier this morning.” (Kotaku)

This may not inspire you to run out and purchase an Xbox 360 console but it may be a deciding factor when pitting it up against the PlayStation 3 when shopping for a current-generation system.

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“[Those games] don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises. … I think, generally, our strategy has been to focus… on the products that have those attributes and characteristics, the products that we know [that] if we release them today, we’ll be working on them 10 years from now.” (1up)

Ghostbusters is a great example of a title which could be well received and fun to play but probably wouldn’t be an exploitable franchise. The game, based on a popular movie, has limited potential for yearly releases and huge franchise success. Ghostbusters fans would probably disagree, but that’s when emotion comes into play. Think dollars and cents, not awesome fun gaming.

Oddly enough many of these business decisions from Activision, Electronic Arts and other big publishers arrive when the economy is in free fall and investors are eying your revenue potential. People make their most important and, usually, unfriendly business decisions when their company is at risk.

It’s sad to think money comes first and entertainment value comes second but we’re not the ones trying to make a profitable living in the industry. Put yourself in Kotick’s shoes as he walks into a board meeting to discuss future plans, road maps and profitability – you’d do what you have to do to keep your job, right?