For many, the Wii's relatively low-res output may not be that big of a deal because their broadband connections lack the bandwidth required for HD video. And given their investment in the Wii, many users probably won't switch to an Xbox 360 or PlayStation simply to watch high-def flicks. Note: While Netflix access is integrated into the Xbox 360's Dashboard interface, PS3 users currently need to use an instant streaming disc, too. Netflix says it hopes to have an embedded solution available for PS3s via a system software update later this year.

Today's Wii console and its (admittedly clunky) Netflix streaming disc represent an interim and relatively cheap solution for Wii owners who'd like to give online streaming a try. Eventually, these users will upgrade to more advanced hardware--perhaps an HDTV with built-in Netflix streaming and Wi-Fi. Or they'll move up to a newer Wii console that's better equipped to stream Internet content.

Until then, the free Netflix disc is better than nothing. After all, all Wii owners have to lose is $9 a month for a Netflix subscription. And if the picture stinks, they can cancel at any time.

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