Microsoft made headlines Monday with the announcement of its gesture-based, controller-free Project Natal for the Xbox 360, but the announcement also includes upgrades to Microsoft's deal with Netflix.

Starting in the fall, Xbox Live Gold members who are also Netflix subscribers will be able to browse and add movies to their Netflix queues from the Xbox 360, not just from the PC, Netflix wrote in a blog post. Users will also be able to simultaneously watch movies with up to seven friends, chatting about the film while it plays.

The news builds on a deal that was announced in July 2008 and went live in November. Launched in tandem with the New Xbox Experience (NXE), the Netflix deal allows members to watch movies available via Netflix's "Watch Instantly" library through the gaming console.