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So much for Xbox 360’s game console exclusivity on Netflix streaming. This morning, the DVD-by-mail pioneer said that beginning sometime next month, owners of Sony’s PlayStation 3 game consoles will be able to stream movies and TV shows from Netflix.

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Microsoft’s first brick-and-mortar retail store isn’t scheduled to open for another few hours, but the software giant is already selling PC hardware and third-party software titles–on the Web. This morning it unveiled an expanded online store that will better reflect its new real-world counterpart.

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Nintendo President Satoru Iwata likes to say that game console price cuts aren’t the cure-alls many believe them to be. “People often talk about the price cut as if it’s an almighty weapon,” he said this past summer. “The fact of the matter is what a price cut can do is rather limited.” But Nintendo is cutting the price of its Wii videogame system just the same.

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The videogame industry may be recession-resistant, but it is clearly not recession-proof, as some once claimed.

If it was, surely we wouldn’t be seeing the sixth consecutive month of declining sales reported by NPD. According to the market research firm, overall sales in the United States in August of hardware, software and game accessories were $909 million–a 16 percent drop from the same period a year ago.

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Who will win the gaming console price war of 2009? Consumers. Two weeks after Sony lowered the price of the PlayStation 3 to $299 from $399, Microsoft did the same for the Xbox 360 Elite, slashing $100 off the price of the console. In addition, the company cut the price of its now discontinued Xbox 360 Pro console by $50 to $249.99, while supplies last.

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The PlayStation 3 price cut is a rumor no longer. Hoping to bolster sales in advance of the holiday shopping season, Sony Tuesday announced a new slimmer verison of the game console and slashed $100 off its price.

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“For something we pulled together in six months, we are very pleased with the satisfaction we got. The satisfaction for the device was superhigh.” Microsoft chairman Bill Gates said that of the Zune in October 2007. Boy was he ever wrong. MarketWatch reports that revenue at Microsoft’s Entertainment and Devices unit, which manages the Zune and Xbox 360, fell 42 percent to about $211 million in its most recent quarter.

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So those rumors of a PlayStation2 price cut? True. Rumors of a similar cut for the PlayStation 3? Not so much… Confirming recent speculation, Sony this morning said that it’s dropping the price of the PlayStation 2 from $129 to $99.99 as of April 1. But it aggressively dismissed reports of a PS3 price drop as false.

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Repudiating claims that Blockbuster intended to file for bankruptcy earlier this month, spokesperson Karen Raskopf said the troubled video rental chain has “lots of plans to grow our business.” If inking a video-on-demand deal with a declining DVR pioneer is one of them… well, that’s not much of a plan, is it?

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Playing videogames in a recession doesn’t make them any less fun–even if that recession is the worst we’ve seen in 50 years. Though the economy shuddered and slowed in December, videogame industry sales rose nine percent in the states. And for the year, sales of games, consoles and accessories grew 19 percent to $21.3 billion, from $18 billion in 2007.

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Since John Paczkowski is still out of range, Beth Callaghan will post Digital Daily today.

Reuters/Hollywood Reporter reports that Microsoft execs have been talking to talent agencies all over Hollywood with the intent of building an exclusive body of original content for the company’s Zune player. Not just standard sitcom fare, either–Zune’s recent update of firmware for the device provides better social functionality, and Microsoft sees this as a move toward the kind of communal functionality pioneered by the XBox multiplayer experience.

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Now that Sony has completed its transformation from disruptive innovator to struggling consumer electronics player, it’s embarking on its next big corporate makeover: reinvention as “a global provider of networked consumer electronics and entertainment.” And so it’s begun offering a video-downloading service for its PlayStation 3 videogame console.

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