So after months of rumors Microsoft has come clean. The Xbox 360 WILL stream Netflix’s 10,000+ movies and TV shows. Praise the lord! I almost bought a Netflix Player, although based on my experience so far (I have a review unit) the Netflix Player is a pretty great device – it has no fan noise like the Xbox 360. The Netflix service will be free to all Gold Member Xbox live customers. Streaming content will be allowed to be shared with friends (aka streaming party), but you will have to have a Netflix subscription of $8.99 or higher. The picture quality will be standard definition.
The Netflix on Xbox 360 service is expected to launch Fall 2008.
Official release here