Video game industry analyst Michael Pachter has called Netflix's recent move to bring their streaming service to the Sony PlayStation 3 as an "intermediate step" mainly designed to allow the service without breaking an exclusivity deal the company has with rival Microsoft's Xbox 360.
For the time being, users will have to insert a disc into their PS3s to have the streaming features as it will not be part of the actual firmware until 2010.
Pachter believes the disc is a necessity to avoid breaking the deal with Microsoft.
"We believe that the exclusive arrangement limits Netflix’s ability to appear on the 'dashboard' for the PS3 or the Wii, but because both devices have open architecture Internet browsers built-in, the solution proposed for the PS3 would likely not violate the terms of Microsoft’s exclusivity," says Pachter. "We anticipate that a similar arrangement will be announced for the Wii in the next 12 months."
Pachter believes the disc is a necessity to avoid breaking the deal with Microsoft.
"We believe that the exclusive arrangement limits Netflix’s ability to appear on the 'dashboard' for the PS3 or the Wii, but because both devices have open architecture Internet browsers built-in, the solution proposed for the PS3 would likely not violate the terms of Microsoft’s exclusivity," says Pachter. "We anticipate that a similar arrangement will be announced for the Wii in the next 12 months."
