Since it launched, the Xbox 360 has offered more than just games. Even before the latest update, owners could access video from providers including Netflix (NFLX), Hulu Plus and ESPN.

But Microsoft has been continually adding new entertainment services, making it an ever-more compelling digital media hub, said Kurt Scherf, principal analyst with Parks Associates, a market research firm.

"You can't help but be impressed with what Microsoft has done with living room entertainment," he said.

From the article, "Microsoft to update Xbox with new features, entertainment channels" by Troy Wolverton

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