YouTube Inc. took the wraps off of its YouTube XL product yesterday, unveiling a new user interface designed for viewing online videos on large computer screens or on TVs equipped with a Web browser.

The move comes four months after Google (Nasdaq: GOOG) launched YouTube.com/TV, which allows owners of the Sony Playstation 3 and Nintendo Wii gaming consoles to access YouTube videos on their TVs.

“You could say we’ve now ‘expanded’ on that. Just as there’s a YouTube browser for mobile devices, the new YouTube XL is optimized for watching videos on any large screen,” YouTube platforms product manager Kuan Yong said in a post on the YouTube blog. Users who try to access the YouTube.com/TV site are now redirected to YouTubeXL.

YouTube XL debuted just a few days after rival video site Hulu LLC launched a desktop application that allows Web surfers to use Apple or Windows Media Center remote controls to navigate content, enabling a “lean-back experience.” YouTube says XL works with bluetooth-enabled remote controls and even some cellphones.

Although YouTube XL contains some cool features, including a continuous play feature that allows users to watch all videos sequentially on a topic, the company is reaching a small market with the product, since few consumers can access the Internet on their TVs.

CNET notes that one of the drawbacks of YouTube XL is that viewers will not be allowed access to YouTube’s “modest library of movies or premium TV shows, as the company is still working through licensing issues.”

Also in the news: