Microsoft, feeling the heat from today’s release of Sony’s Playstation 3, has partnered with Warner Bros. and Paramount Pictures to offer on-demand movie rentals through its’ XBOX Live Video Marketplace. There will be no additional cds or hardware needed. Everything can be done through the systems internet connection. CBS, MTV, and Turner Broadcasting will be selling television show downloads through the marketplace early next year.

Movies will retail for $3.99 and older releases for $2.99. Television shows are expected to go for $1.99 an episode. Sony has plans to do something similar but nothing yet is concrete.