Photo: Associated Press
Microsoft is talking to networks about licensing TV content for the Xbox 360, according to a report today in AdAge.But apparently the move is being debated by Microsoft execs — some think that providing TV via the Xbox would cost too much and wouldn’t sell many additional Xboxes.
Given Microsoft’s long history of failure in the TV market, it’s easy to see why execs are nervous about this latest effort. Google and Apple have also released interactive TV products, but neither has sold well.
Still, if Microsoft used the Xbox to enter the TV market, it would immediately become a huge player: there are more than 30 million Xbox 360 users, and they already spend 40% of their time watching video from Netflix and other sources.
Whatever it ends up doing, it’s clear that Microsoft is considering new approaches to TV and video. Reuters first reported Microsoft’s talks with TV providers last fall, and earlier this year the company put longtime hardware head Tom Gibbons in charge of its interactive TV business.
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