DigVid Review: A Message for Microsoft and Yahoo! -- Just Let it Die Already

Microsoft and Yahoo! are still at it, with Microsoft allegedly making a new offer for Yahoo!’s search business, which Yahoo! has been running around telling everyone who would listen that it wanted. Coming as no surprise to anyone unlucky enough to be following this, Yahoo! promptly rejected that offer, calling it an ultimatum. Microsoft denies that, saying in a statement that the offer stands as an opening point for a new round of negotiations. OK, there’s playing hard to get and then there’s just being psychotic. I echo AllThingsD’s Kara Swisher who today calls these talks “contentious but increasingly tedious,” or the NY Times’ Andrew Ross Sorkin, who quotes the two parties calling each other  “ludicrous” and “ridiculous.”

Meanwhile, in more productive Microsoft news, Microsoft is teaming with Netflix to stream movies and TV shows to the TV via Micrsoft’s Xbox Live. Xbox Live Gold members who are also Netflix subscribers will be able to instantly stream some 10,000-plus programs to their TV at no extra cost. Currently, Xbox Live members can pay to download movies and TV shows from the Xbox Live Marketplace Video Store.

Today, Xbox LIVE members can also download movies and purchase TV shows from the industry-leading Xbox LIVE Marketplace Video Store, currently packed with content from more than 45 networks and studios. The Xbox LIVE Marketplace Video Store offers more than twice the high-definition content than the nearest cable provider and more than 6,000 hours of TV shows and movies.

And while Apple sits back and laughs at the endless Microsoft-Yahoo! drama – or more likely, just ignores it completely – the company this weekend sold more than 1 million units of its new iPhone 3G, and saw more than 10 million copies downloaded of its new App Store, which offers all sorts of third-party applications for the iPhone and iPod Touch. By comparison, it took 74 days for Apple to sell its first million iPhone 1.0, so this next-gen is off to a blazing start.

Finally, if you want to know the absolute latest that’s happening in the red-hot gaming world, check out E3 Expo going on now.