Microsoft has always been adamant about their goal of making the 360 a multi-faceted media machine, and with over 10,000 available items to download on Xbox Live’s Video Marketplace, they are now taking credit as the conqueror of the American living room. Add in the fact that over $1 billion has been spent on the Marketplace and Microsoft seems convinced that they have been accepted into the homes of consumers as not just a device for gaming, but film and television as well.

New relationships forged with Universal, NBC, and Netflix also seem to be showing that the entertainment industry considers the Marketplace viable medium in which to distribute content. Sony has said in the past that they’re obviously not blind to what Microsoft is accomplishing in the arena of digital distribution, but with Marketplace’s rock solid foundation of partnerships, can Sony really create a system to rival it?