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COMING TO THE XBOX: People will soon be able to watch TV shows and other content through their Xbox 360 gaming consoles.
THE CATCH: Most of that won't be free. People may be able to access TV content in different rooms of the house without needing a second set-top box, but they'll still need a subscription to Comcast or other pay-TV services.
THE STRATEGY: The deal helps Microsoft Corp. position the Xbox 360 as more than a gaming console. The Xbox, along with Sony Corp.'s PlayStation 3 and the Nintendo Wii, already stream Netflix.
(Reuters) - Microsoft Corp has struck more than 40 deals with TV and entertainment companies, making it possible for owners of its Xbox gaming console who are also paying cable subscribers to watch live television through the devices.
The greatly expanded range of TV content on the gaming device effectively makes the Xbox a cable TV set-top box, but stops short of speculation that Microsoft would encourage Xbox owners to drop their pay-TV subscriptions.
Several major technology companies including Microsoft, Google and Amazon.com , have been in long negotiations with the programmers and Hollywood to see if they can provide so-called 'over-the-top' online video services which could rival traditional cable television. The programmers have so far successfully resisted any attempt to unravel the $100 billion a year relationship between programmers and pay-TV distributors.
The new Xbox deals announced on Wednesday are part of the technology giant's bid to make its gaming console a major media hub in the living room and took years to sort out, said Ross Honey, general manager of content acquisition for the interactive entertainment business at Microsoft.
In the U.S., services from Time Warner -owned HBO, Comcast Corp and Verizon Communications' FiOs will be available on the Xbox while other large deals in other countries include Televisa in Mexico and the BBC in the UK.
Microsoft is betting that people will want to watch TV through the Xbox using the Kinect, the motion controller gadget Xbox debuted last year. If users have a Kinect, they can use voice recognition software to search for shows.
"There is no other platform today that lets you just ask the service, 'hey I want to watch 'True Blood,' and then you get all the ways to do that," Honey said.
Sony Corp's <6758.T> PlayStation, the rival gaming console to the Xbox, started offering live feeds of DirecTV's NFL's Sunday Ticket this year for the first time. Online services such as Netflix have been on both services for years.
He said that while the company is committed to video games, the amount of time Xbox users spent watching video grew by three times this year.
Microsoft shares rose 2.7 percent on Wednesday to $26.03.
(Additional reporting by Yinka Adegoke, editing by Bernard Orr)
NEW YORK (AP) — Owners of the Xbox 360 will soon be able to watch a broad breadth of TV shows and other content through their gaming consoles — though most of that won't be free.
Microsoft Corp. said Wednesday that it's partnering with Comcast Corp., HBO, Bravo, Verizon's FiOS service and others to bring on-demand and live television content to the Xbox.
This doesn't exactly replace the set-top boxes currently used to access TV programming. But M2 Research analyst Billy Pidgeon says it's likely a good option for families who want to able to access TV content in different rooms of the house. With the Xbox, they won't need a second set-top box.
What they will still need is a subscription to Comcast or other pay-TV services. The Xbox may make it easier to access those HBO shows, but you'll still have to pay for them. In some cases, you'll also need a subscription to the Xbox Live Gold online service, which costs $60 a year.
Besides on-demand shows and movies, some live TV channels will be available. For example, Verizon said it will bring a selection of popular live TV channels to the Xbox. The key word here, Pidgeon points out, is "some." Verizon subscribers will still need a set-top box to access all channels and digital video recording services, he said.
The deal helps Microsoft position the Xbox 360 as more than a gaming console. The Xbox, along with Sony Corp.'s PlayStation 3 and the Nintendo Wii, already stream Netflix. Sony has also worked to position the PlayStation 3 as an entertainment hub for games, music and movies.
"We continue to invest and focus on games. It's a key pillar of our offering," said Ross Honey, general manager of content acquisition at Microsoft. The latest TV offerings, he added, "bring another pillar" to the Xbox experience.
Microsoft has sold 55 million Xbox 360 consoles worldwide since they were introduced in 2005. There are 35 million Xbox Live members. The company said the new entertainment content will be available this holiday season in more than 20 countries, but did not give an exact timing.