It looks like Netflix and Microsoft have been able to handle the rollout to Xbox 360 customers, with only a few minor glitches. Microsoft's Major Nelson reports that 14 million customers are updating their Xbox 360, so the lack of serious problems is amazing.
If you're thinking about purchasing a Xbox 360, keep in mind that you need to get a Gold Membership (about $40 for 13 months), a wireless adapter if your Xbox won't be near the router (about $80), and a memory card or hard drive if your Xbox doesn't have one. Microsoft is offering a free memory card or $29 hard drive if you have a system without one.
Here's a short video that shows the Netflix player on the Xbox 360:
I've put together a series of photos of the upgrade process and the player in action. You can view the entire process after the jump.
What do you think of Netflix streaming on the Xbox 360?
When you first boot up the Xbox 360 you'll see the upgrade notice screen:
The update only took a few minutes to download and install:
The Netflix Player is an application you have to download and install on the Xbox 360:
The Netflix Player booting up:
You have to activate the Xbox 360 using a code:
Enter the code from the Xbox 360 on the Netflix Ready Device Activation page (found on Your Account):
Your Queue on the Xbox 360:
Movie start and information:
Determining your video quality and downloading the movie:
The movie playing:
Fast forwarding through the movie. You can go from 2x - 32x: