The problem with your hypothesis is the same problem that has kept Apple from really biting into Microsoft's market share — people install software on their computers. People want Microsoft Office because they know Microsoft Office. People want to be able to put Photoshop on their computers, or music creation software, or money management software. They want to be able to run their excel spreadsheets, their instant messaging programs, and their games.

Software has to be created for use with a specific operating system. Who would buy a laptop (particularly an expensive, higher-end laptop like a VAIO) if they could not install whatever software they want on it?

Frankly, it's easy to say that someone could compete with Microsoft in this arena, but if that were the case, why isn't anyone? Even Apple, who has been around longer than Microsoft, and who have both the hardware and software infastructure (and licensing agreements with Microsoft to allow Office on their OS), have not been able to pose any threat to the Windows market share.

VAIO without windows would bleed money for a few months, then quietly disappear.

Update:

It appears that the sudden yoinking of Columbia Pictures films from NXE Instant Queue access is a licensing issue with Sony after all. MTV Multiplayer pinged us with word that, on the rental service's official blog, Netflix corp. communications VP Steve Swasey writes:

"As watching instantly becomes a more prominent part of the Netflix service, our goal is to have all of our streaming content licensed for all of our partner devices. We're doing well in this area, but it will take some time before we fully achieve that goal. Today, titles regularly come in and out of license and there is a natural ebb and flow to what we have on license at any given point in time. In the case of Xbox 360, a few hundred titles are temporarily unavailable to be streamed via the Xbox game console. Those titles are still available to be watched on subscribers' computers and on TVs via other partner devices, and we hope they'll be licensed for Xbox 360 shortly."

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This is only Columbia pictures a subsidary of Sony. And to who said that Sony owns half the movies rights....Warner Bros by far is the biggest studio of both film and television. They own close to twice the holdings that Sony Pictures owns.

On topic: Having movies come in and out of the instant watch isn't something new. More than likely they will be replaced once the licensing has been worked out.

Sounds like one of those red-tape issues to me, if it's only Columbia. Sony subsidiaries seem to run on their own agenda, and sometimes conflict in values.

After all, Sony is supporting the digital distribution market as well with the PS3 video store.

Not the same thing. It's like Microsoft not offering Windows to the PS3. Which they don't. It's perfectly reasonable.

Sony Pictures and Sony Computer Entertainment are both part of Sony, right? They both have the same CEO, right? They are the same company, right? SCE needs help, Sony Pictures are giving them help.

Sure, it may lose Sony Pictures some money, but hopefully it will make some money for SCE. Unlikely, but why would they want to support their competitor?

Microsoft not offering Windows to Sony Vaio would be like Sony not... well, there's no equivalent.

Technically Microsoft could hit Sony hard if they followed suit. They could actually decide not to allow any Sony product to be used through Windows. That means no internet for your PS3, no updates to your Sony mp3 player,camera. But the best one of all they could deactivate Blu-Ray technology from the windows format meaning your installed Blu-Ray player will not work.
This is Microsoft people, the worlds biggest computer giants. If they decided to pull the plug on Sony it would hurt them a lot more then stopping people watch a few 80's Columbia films.

^WTF? Microsoft doesn't own the internet. Sony browses the internet using Opera and the internet signal runs trhough a router which is not owned by Microsoft.

In addition, any devices that currently run in windows always will because the manufacturer has put Plug and Play drivers on their hardware and many companies use the same drivers. It would be nearly impossible to with hold the drivers from companies, and even if they did Sony could just package drivers with their products and people could download them onto the computer. It is illeagal for any company to control what you put on your computer using their OS. Do you think pirating would be as prevalent if M$ or anyone else could control what programs you put on youor PC.

You Sir are greviously misinformed on how Computers work.

I wouldn't read too much into this. Like everything else in life, this one is about money. It is a licensing issue with Columbia. Once the financials are agreed upon the movies will be available. Netflix doesn't have very much power in this situation, I would expect them to give in pretty quickly.

Are any of the movies in question currently available via the xbox live movie rental service? Is MS still offering their own service?

Cockblocking