Microsoft thought it was being all fancy with its dashboard update that brought search to Netflix, but Sony has just announced its own competing update to Netflix streaming. Starting October 18, you'll be able to access Netflix on your PlayStation 3 via an app; no more disc needed. That's not the best part, however, as some content will then be available in 1080p, with 5.1 surround sound.

"Beginning October 18, the PlayStation 3 computer entertainment system from Sony Computer Entertainment, Inc. will be the first consumer electronics device to support 5.1-channel surround sound on movies streamed from Netflix," Netflix announced today. There will be more devices added over time, but for now the PlayStation 3 is the only game in town to stream from Netflix with full surround sound.

Sony added its own good news to this orgy of updates. "Starting on Monday, you'll be able to instantly watch some movies and TV shows in 1080p high definition, listen to Dolby 5.1 channel surround sound, and view an increasing portion of our content library with subtitles. This will bring the home theater experience right to your living room and make instantly watching movies even more enjoyable," the company announced.

Sony also promised a new user interface that "brings a much richer and faster browsing experience, content search directly on the device, and dramatic improvements in how fast playback starts." There is no bad news here; Netflix on your PlayStation 3 will suddenly get much cooler.

Just to beat the commenters to the punch, this is extremely impressive when you factor in the lack of monthly charges for Sony's online offerings. Microsoft, the ball is in your court.