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Today, at the MIX10 event in Las Vegas, Microsoft announced that its upcoming Windows Phone 7 Series platform will feature Netflix as one of its third-party launch applications — including Netflix’s popular Watch Instantly streaming video service.

The announcement is a major coup for Microsoft, considering that Netflix’s Watch Instantly has yet to find its way onto the iPhone or Google’s Android platform. Engadget has some pictures and video from the event, which shows off the red-draped application. It appears to offer similar functionality to the Xbox 360’s Netflix application — giving you access to your Watch Instantly queue, and the ability to find recommended media, as well as what’s new on Netflix.

There’s no telling if the service will only be available over Wi-Fi — that’s something Microsoft will have to smooth out with its cellular provider partners first — but even if it is limited in that way, it’s still more than what Apple and Google are offering. Given Microsoft’s lead with Netflix support on the Xbox 360, it’s no big surprise that Netflix went with Windows first. It remains to be seen if Apple will take this as a challenge to finally court Netflix for the iPhone, or if it will stay on course.

Microsoft also showed off The Harvest — a 3D action game with Xbox Live support. The game will include achievements familiar to Xbox 360 players, and will feature destructible environments. Check out a video of the game in action below:

[youtube=http://www.youtube.com/watch?v=NzdH1UI-Zo8&w=640&h=385]

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