Wedbush Morgan Securities golden analyst Michael Pachter has estimated that some 500,000 Xbox Live Gold account holders have activated the Netflix application in the past three months. I’m sure that some of those 500k people already had Netflix before they had Live, but plenty of people probably signed up just for the instant queue which is such an amazing feature I feel bad for anyone who can’t partake of its wonders.

This news comes right on the heels of the announcement about the new XBL update that will include the ability to queue the movies from dashboard, instead of having to go to your computer. This will certainly even further increase the user base of the service, because some people found the lack of that functionality to be a hassle.