According to Variety, Microsoft's HD movie downloading service, which began last fall, has already surpassed Amazon.com's similar service known as Unbox.

"Though there are fewer than 3.5 million 360s in the U.S. by last count, movies available from Warner and Paramount, as well as content from CBS and MTV on the TV side, are doing at least as well and, in some cases, better than on competing Web sites, which are available to anyone with a PC and high-speed Internet connection."

The report goes on to state that movies that performed poorly at the box-office are doing exceptionally well on Xbox Live such as Poseidon and The Lake House.

Apparently Microsoft has figured out how to break down the mental barrier keeping you from paying for and watching crapola. Well done!

Check out Variety's full report HERE