Variety reports that Xbox Live Video Marketplace is beating out Amazon’s Unbox service, even though it has presence in fewer homes throughout the US. Though there aren’t official sales figures, insiders have told the publication that Microsoft’s online video downloads service is working far better than that of the largest e-tailer on the planet, or any other online retailer for that matter. No exact reason can be found as to why, but the report states that Xbox 360’s direct connection to the TV, as well as tech-savvy users, contribute to the popularity of the service.

The Xbox Video Marketplace has also given flop movies a chance to prove themselves. “If you look at our sales charts, movies like ‘The Perfect Storm,’ ‘Unforgiven’ and ‘Swordfish’ are all doing disproportionately better than you would expect, and the only explanation is that they’re available in HD,” said Ross Honey, senior director for media in Microsoft’s content and partner strategy group. In fact, Poseidon, which took $160 million to produce, but bombed badly at the US box office, is quite popular on the online video service.

The report also states that Microsoft is in talks with various studios to get more content on the online marketplace, though no timeframe was given as to when new content can be expected.

According to Variety, users of Xbox 360’s video download service is consuming more than any other video download service. Even though the console is “only” in 3.5 million homes (as per Variety), Microsoft’s Xbox Live video service has generated far more downloads than competing e-tailers, including the biggest online retailer Amazon.

The article theorizes that the console’s direct connection to the TV, as well as the option of downloading HD movies, has resulted in its greater success, whereas only tech-savvy users on other e-tailers can watch their purchased videos on their television. It continues, saying that Microsoft is in talks with more studios (except Sony, of course) to get their hands on more high-definition content for its users.

According to a poll (thanks Kotaku!) by the Japanese arm of Amazon.com, Japanese gamers want the 60GB PlayStation 3 over Nintendo’s Wii. Unsurprisingly, interest in the 20GB version of the console is very limited.

The 60GB PS3 will hit the Japanese market with an open price, though many believe retailers will mark the console to about 70,000 yen ($600 USD).