Xbox 360 promises best and broadest entertainment lineup ever; more fun, social and simple-to-use experience.

LOS ANGELES — July 14, 2008 — As Xbox 360 readies for the next wave of audience expansion, Microsoft Corp. today announced a new Xbox experience that will reinvent home entertainment from the inside out, changing the way we play games, watch movies and TV shows, and even become contestants in game shows. It all begins this fall with a bold new look and feel that is fun, social and simple to use.

The announcement was made during the E3 Media and Business Summit in Los Angeles. It came amid the unveiling of an exclusive partnership with Netflix Inc. that will give Xbox 360 users instant access to more than 10,000 feature films and television shows with a click of a button.

Also on the docket: The best and broadest entertainment lineup the Xbox 360 video game and entertainment system has ever seen. In its strongest broadening play yet, Xbox announced Xbox LIVE Primetime, the next evolution in game shows slated for Xbox LIVE this fall; TV shows and movies from world leaders in entertainment including NBC Universal, Universal Studios Home Entertainment, SCI FI Channel and USA Network domestically and Constantin and MGM internationally; and blockbuster games “Lips,” “Rock Band 2,” “Scene It? Box Office Smash,” “You’re in the Movies” and the much anticipated “Final Fantasy XIII.”

“We’re entering a new age in entertainment, and Xbox 360 is uniquely positioned to become the heart of the living room,” said Don Mattrick, senior vice president for the Interactive Entertainment Business at Microsoft. “The new Xbox experience offers more content than you can find from any device that connects to the television. That convergence of entertainment and gaming will bring new people and more families to the category, driving a record year for the games industry.”

“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 entertainment,” Mattrick said.

Netflix Jumps In With Entertainment for Everyone

The exclusive partnership offers Netflix subscribers the ability to instantly stream movies and TV episodes from Netflix to the television via the Xbox 360 video game and entertainment system. Xbox 360 will be the only game console to offer this movie-watching experience, available to Xbox LIVE Gold members who are also Netflix subscribers at no additional cost.

From the Netflix Web site, subscribers simply add movies and TV episodes to their instant Queue, which will appear automatically on the TV screen via Xbox 360. Once selected, movies will begin playing in as little as 30 seconds. In addition to instantly streaming Netflix movies to the TV, Xbox LIVE Gold members can browse and rate movies, fast-forward, pause and rewind, all using either their Xbox 360 Controller or remote.

Netflix on Xbox 360 will launch this fall with the release of the new Xbox experience, a new generation of games and entertainment experiences that will be available for Xbox 360 this fall.

The New Xbox Experience

The new Xbox experience represents the first time in history that a mass market consumer electronics device has been reinvented through free software, giving people more fun and intuitive ways to interact, play and enjoy entertainment.

“Xbox LIVE is the world’s fastest-growing online social network on TV,” said John Schappert, corporate vice president of Interactive Entertainment LIVE, Software and Services Business at Microsoft. “We doubled our membership the past two years, growing from 3 million to 6 million, and then from 6 million to 12 million. And today, we are adding a new member every five seconds. With the best and broadest social entertainment experiences launching this fall, the future is limitless.”

Some of the features that make the new Xbox experience groundbreaking are the following:

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