Specifically, online movie streaming company Netflix came under fire during the dashboard update when it revealed that hundreds of movie and TV titles in its portfolio – many of which belonged to Sony or its subsidiaries – would not be available for viewing due to supposed licensing constraints.

Despite rumours of strategic intervention by Sony Corporation given its positioning as Microsoft's main market rival in the videogame industry, Netflix has now begun streaming some of the content initially outlined as unavailable to the service's disgruntled Xbox 360 users.

Available through the Netflix Instant Watch service, company spokesman Steve Swasey has confirmed that some of the previously unattainable content is now open for streaming; although he declined to say exactly how many titles had been freed up and how many remained out of reach.

“A few titles that were not available last week have come.. others have not,” commented Swasey, who added somewhat vaguely that Netflix hopes “to have all available titles on all devices soon.”

Some of the previously blocked movie titles now open to Xbox 360 users include classics such as The Karate Kid, Ghostbusters and Groundhog Day, reports Yahoo! Tech. However, newer movies including Ghost Rider, Superbad, and Resident Evil: Extinction remain blocked.

Recently introduced to the Xbox 360 user base, the Netflix streaming service is supposed to offer some 12,000 movies and television shows. It is currently available to subscribers via computers and TVs through delivery devices such as the Roku Netflix Player, the TiVo digital recorder, the Samsung Blu-ray player, and now Microsoft's home videogame console.

Of all those devices compatible with the streaming system, Sony's content is wholly available on all but the Xbox 360. Sony has not offered any comment as to whether it is intentionally preventing Netflix from streaming its content to a Microsoft-owned gaming platform while its own PlayStation 3 is still striving for purchase.