Microsoft eyeing Xbox 360 TV service?

November 30, 2010

Could the Xbox 360 soon be streaming broadcast television into living rooms? It appears Microsoft is at least toying with the idea.

Microsoft has been mysteriously quiet while both Apple and Google have delivered Internet-connected set-top boxes enabling people to watch TV and movies from a source other than the money-grabbing cable companies. Until now, possibly, with the Xbox 360 being eyed as a potential ready-made delivery system for such an offering.

Apple TV was relaunched this year, and Google TV finally launched after years of rumors. The latter may have somewhat limited content on offer thanks to all the U.S. networks blocking the hardware, but at least Google is getting into the game with one eye very firmly on the future. Microsoft, however, hasn’t yet jumped on board the bandwagon.

According to Reuters, this could change in the near future. According to sources, the company has already held talks with some networks about creating and launching a subscription-based TV service, possibly on its bestselling Xbox 360 games console, currently installed in more than 45 million homes worldwide.

Microsoft’s Xbox 360 TV is being imagined as a “virtual cable operator,” with Xbox 360 owners charged a monthly fee to watch networks “such as ABC, NBC, Fox, CBS, ESPN or CNN.” Other options include creating social and interaction tools for people watching TV together over the Internet, and creating bundled packages of content built around certain genres, such as Sport or Children. It could also then sell premium cable channels such as HBO and Showtime directly to end users.

Any such service could be at least 12 months away, meaning Microsoft will have somewhat missed the boat on this one. However, if it got the deals in place first unlike Google and, to a lesser extent, Apple, then it would have a chance of actually competing in this emerging sector.



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