Microsoft Moves Into Television With Xbox TV
Gaming Console Will Be Platform for New Streaming Content
by Branford Lyles on September 15, 2011
This holiday season will see the launch of Xbox TV, a new service on the Xbox video game console which could change the way many people, or at least gamers, watch TV. Microsoft CEO Steve Ballmer announced the project at a financial analyst meeting in Anaheim, Calif. on September 14th. While details on pricing, content partners and what specific programming will be available are still forthcoming, the plan has the potential to do some serious damage to the already struggling cable TV industry.
During his presentation, Ballmer said that Microsoft would be working with “dozens or hundreds of additional video content suppliers. This would most likely create an on-demand model similar to Hulu or Netflix, both of which can currently be streamed via the console. Additionally, Xbox TV will also have live television programming. This will include “news, sports, and your favorite channels.”
Xbox already has similar deals in other countries which allow it to, for example, stream channels on Sky TV in the United Kingdom. The technology does not require any new equipment, like a set-top box or dish, other than the Xbox itself. Sony’s Playstation 3 currently offers live sports season passes for Major League Baseball and the National Hockey League for sale which stream games through the system.
Why should Microsoft succeed where both Google and Apple have failed? The Kinect, the Xbox voice and motion-controlled device. “Having all of that content is right on, it’s fantastic, but it brings a new challenge with it,” said Ballmer. “Certainly we all know the frustrations of using guides and menus and controllers, and we think a better way to do all of this is simply to bring Bing and voice to Xbox. You say it, Xbox finds it.”
One hurdle that using the Kinect may present is its lack of market penetration. While most new Xboxes are bundled with the accessory, anyone who purchased the system before Kinect’s debut in 2010, will not have voice control. Sales figures from market research firm NPD Group show Xbox has been the best-selling console in America throughout 2011.
One potential downside to Xbox TV may be programming redundancies with the content currently streaming on Hulu and Netflix. Both offer a wide range of television episodes and is has yet to be stated how Microsoft would deal with potential competition on its own platform.
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