If estimates from Emerging Media Dynamics are correct, Microsoft could end up with a nice chunk of change in its pocket thanks to the recently unveiled Xbox Live Video Marketplace. The firm estimates that by 2011, Microsoft could make as much as $726 million via downloadable movie and video content, with about $92 million of that being made this year.

With all those videos being downloaded, Microsoft had better come out with a larger add-on harddrive soon. Something tells me that all that media isn’t going to fit on the piddly 20 GB drives that current 360 owners are using.