Pachter Predicts: Microsoft and Netflix Ready to Partner Up
By Chris on Sunday, June 1st, 2008 at 2:45 PM PST In Game Companies, Game Consoles, Game Platforms, Gamer Life, Microsoft, Microsoft
This is always a favorite segment of mine, where my sworn enemy, Wedbush Morgan’s Michael Pachter, provides his insight into the gaming world. Based upon some recent comments at a Netflix analyst event, Pachter believes that Netflix and Microsoft have already to will soon partner to expand the online steaming capabilities of the Xbox 360.
The rumors have been around for quite some time. Back in March, Netflix said it had polled users to gauge their interest in streaming movie content through the 360. During a Q3 2007 financial call with analysts, the company said it was looking at delivering movies through internet-enabled HD-DVD and Blu-ray devices, including the 360 and PS3. Pachter believes the 360 is the only one that makes sense for Netflxi to partner with, as it has an install base large enough for it to make sense.
“The competitive advantage of such an alliance is clear: Netflix customers who are Xbox Live members will have the ability to stream online content through their Xbox 360s directly to their televisions. The ability to do so is available without the Xbox 360, but requires a measure of technological sophistication and a high tolerance for failure,” Pachter said.
I certainly would enjoy being able to stream movies from Netflix in this fashion, but one of my concerns would be its impact on the stability of Xbox Live. The service had such a hellacious start to 2008 that makes me wonder if it could handle something like this — that’s assuming the movies would be streamed through Xbox Live’s servers, of course.
via Gamasutra
Chris, they’ve been updating the servers for Live lately, remember? I think the servers could handle it as long as there aren’t too many people. And it’s not like Microsoft can’t afford better, or more, servers.
This sounds great. Netflix was already planning to do something like this by buying a box, but now that I might be able to get it from my Xbox sounds wonderful.
This is indeed awesome. I wonder how they will stream HD content though. I don’t think that the buffer will be as fast as what they are already using on their site. Then again, I’m not an expert on streaming content. I hope this is true though. I’m still getting the PS3 for the MGS bundle, but I may not need to purchase as many Blu-Ray movies as I originally thought.
Do it Microsoft!