Microsoft video to relaunch as Zune Video this fall

Microsoft will relaunch its Xbox Live Video Marketplace as Zune Video this fall and Last.FM will be included as a free service to all Gold members.

The movie library will be updated to 1080p with instantaneous download via streaming for eight to 18 countries.

“So what does Zune bring to the party? Well, in time Zune will add hundreds of new pieces of content to Xbox Live. We're talking a vastly expanded library of the hottest blockbusters and they're all yours to download to rent or download to own,” said Microsoft.

“Pick a movie and you can stream it into your living room instantly and in anything up to 1080p high definition with 5.1 channel surround sound. In other words, with a good broadband connection, there are no pauses, no lengthy downloads and nothing else to stand between you and stunning HD entertainment.”

Xbox Live will allow you to watch movies with your friend who is not sitting beside you either via a virtual cinema and talk about what you see with voice chat.

Sounds good for those in a long-distance relationship, eh?

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