Man, gaming consoles have way more capabilities than when I was playing my Sega Genesis nonstop back in the day.  Machines like the Xbox 360, Wii, and Playstation 3 have become increasingly powerful and able to do more than just play games, and online video is a big part of it.  You can watch Netflix and Hulu on these consoles.  And it’s no surprise that when Strategy Analytics did a study, that this is the source that most households use when watching online video on their TV sets, even more than when people hook up their PC though an HDMI cable.

15 Million Households Watch Online Video Via Gaming Console

The Strategy Analytics study says 12 percent of all online video watched on a TV comes from gaming consoles, which translates to around 15 million households.  While watching online video on a PC is still the overwhelming way people watch online video, period, there is some movement towards watching it on a bigger screen.

This is bad news for services like Google TV or Boxee, which don’t have that added element of being able to play games.  The video game industry is worth $65 billion, and all the consoles can play online video, so getting a machine that specifically plays video is going to have to ramp up their efforts to get attractive and exclusive content.  Yet, we still see this kind of thing on gaming consoles, too.  Even though it’s expensive, the Call of Duty Elite package has some fairly attractive exclusive content that includes video.

It’s going to be a war out there for all the services looking to get attached to your televisions, but right now gaming consoles are winning the war, and appears to be the favorite moving forward.