Amazon and Xbox have teamed up to take on Netflix.  Amazon announced today that they will be providing an Instant Video service that utilizes the Xbox 360.  The Amazon Instant Video App costs $79-per-year (“Prime” service), but allows users to stream more than 17,000 movies ant TV shows from their Xbox 360.  Although there are no additional Amazon costs, besides the yearly $79, users will need the Xbox Live Gold Membership from Microsoft, which costs about $50.

This announcement is a big deal because Xbox 360 accounted for nearly 25% of Netflix’s traffic last year.  The partnership between Amazon and Xbox 360 not only benefits Amazon but also aims to get more people hooked on the media console, especially with Amazon’s Whispersync technology, which lets you start a movie or show on your Kindle Fire and switch to you Xbox 360, without interruptions.

For more information about this partnership, and the implications for Amazon Prime and Netflix, go to: http://techland.time.com/2012/05/29/amazon-instant-video-challenges-netflix-with-app-for-the-xbox-360/