This generation is the first where companies could add new features to consoles over through simple software updates. Digital video rentals, and services like Netflix and Hulu have crept onto the consoles over the years, but do people really take advantage of these options?

According to Microsoft, video content demand is rising with 42 percent of Xbox Live Gold users in the US watching an average of one hour of television and movies on their Xbox, per day.

A Microsoft representative explained to Shacknews that the "more than 30 hours of digitally distributed television and movies" consumed by Xbox Live 'Gold' members per month extends to all available content providers on the platform: Zune, Netflix, ESPN, and Hulu.

Terry Farrell, Senior Product Manager for Xbox Live at Microsoft, told Shacknews that video consumption on the Xbox 360 has gone grown by "three times" over the last twelve months.

Though PlayStation 3 offers additional video options--such as MLB, NHL, and NFL subscription services--Farrell said that Microsoft is not in a hurry to catch up. "We were the first to have Netflix, now it's everywhere" he reminded me during a preview of the upcoming dashboard update. When asked if new services, like HBO GO would come to the Xbox, Farrell wouldn't say but noted that "more announcements are coming" and that I would be pleased with what I hear.