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Really I'm getting tired of the assumptions that Microsoft buys everything.

Doesn't it occur to anyone that the 360 is the leading console+entertainment sytem in the most important market: the US? And that it therfore is a ver valuable partner?
Square even said it was THEIR decision to bring FF13 to 360 as well, not very strange considering 360's userbase in the US.
For Netflix this partnership opens a whole lot of opportunities.