On Wednesday of last week, Microsoft rolled out its long anticipated dashboard update for the Xbox 360 console. Among other things, the update incorporated support for Netflix subscribers with an Xbox Live Gold account to be able and stream the online rental service's catalog of downloadable movies and TV shows through the Xbox 360, some of which is in high definition. With consumers slow to warm to Blu-ray, the Netflix capability could potentially nudge undecided console owners in Microsoft's direction rather than opting for Sony's Playstation 3 + Blu-ray combo. But does Sony feel threatened?

Officially, the answer is 'no.' Following the dashboard update, Sony films pulled a disappearing act from Xbox's Netflix streaming service prompting all kinds of speculation and conspiracy theories. And all of it wrong, according to Sony.

"This issue is not specific to Xbox or any other individual platform," Sony said in an email statement. "Sony Pictures is currently in discussions with the relevant parties to resolve certain licensing matters related to the distribution of its motion pictures. Given the ongoing nature of these discussions, we don't think it is appropriate to comment further at this time."

Netflix spokesman Steve Swasey didn't wish to comment on any specific studio licensing deals either, saying only that titles "come in and out of licensing all the time." And that's where things currently reside in the standoff between Sony and Netflix. Some Sony films have reappeared on the streaming service, but neither Sony or Netflix are saying when the rest might return.

Image Credit: Microsoft and Netflix

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