There were some rumblings about this last week, but today at E3 Microsoft has confirmed the details: Xbox owners will be able to access all the video content on the Zune Marketplace. Playback is enhanced by what Microsoft is calling "Smooth Streaming" - video playback starts very quickly at a low bit-rate, then ramps up in bit-rate for maximum quality. This means that, assuming you have a decently fast Internet connection, there shouldn't be much in the way of "Please Wait: Buffering" messages. The video pushed down the pipe are glorious 1080p, and will have 5.1 surround sound. I haven't ordered many movies off the Xbox Marketplace, but aren't they all in 720p? If so, this is a big jump in quality - nice! There's also going to be enhanced search functionality to make finding things easier - that's a good thing, because the Xbox Marketplace was a very manual affair, and now that the Zune Marketplace is going to be offering scads more content, being able to find it easily is important.