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Microsoft announced at the E3 Media & Business Summit of it’s partnership with Netflix that permits users to watch movies and TV shows using an Xbox 360 console. The companies plan to offer a library of more than 10,000 films and shows. Netflix will provide a movie and TV download service through Xbox LIVE.

The exclusive deal allows Netflix subscribers to stream films and TV shows from the service through their Xbox 360 system. The new deal goes into effect in September after the launch of the new look for Xbox 360 which also includes upcoming 16 x 10 widescreen support, as well as 1440 x 900 or 1680 x 1050 output resolutions.

"Netflix and Xbox 360 are a perfect combination, the leading online movie rental service and the leading games and entertainment system joining forces to create an all-in-one entertainment experience with content for everyone," said Reed Hastings, chairman and CEO of Netflix. “For Netflix, it represents an important step forward in making instantly streaming movies on the TV more broadly available to our members.”