The console wars just got a whole hell of a lot more interesting. Earlier today at E3, Microsoft and Netflix announced an exclusive partnership that will give Xbox 360 owners the ability to stream movies and TV episodes included with their Netflix subscription to their living room TV set. The new service will launch in late fall and be available to LIVE Gold members who are also Netflix subscribers at no additional cost.

The partnership with Microsoft not only comes as a bonus to existing Xbox 360 owners, who prior to the update had to either buy a $99 set-top player through Roku or deal with unofficial (and buggy) workarounds, but also presents potential console owners a compelling incentive to pick up an Xbox 360 over the Blu-ray capable Playstation 3.

Image Credit: Netflix and Microsoft