Microsoft Melds Xbox with IPTV

REDMOND, Wash. — The world’s largest software maker has announced plans to fuse its Xbox 360 gaming console with its proprietary IPTV software. Microsoft will offer IPTV on Xbox 360 to service providers by the 2007 holiday season.

Microsoft didn’t announce which one of its IPTV partners would offer the device, but analysts predict it will be AT&T due to the company’s stature as the largest TV service provider to use Microsoft’s IPTV Edition software.

“Both Xbox 360 and Microsoft TV IPTV Edition by themselves deliver unique and exciting entertainment experiences today, but IPTV on Xbox 360 is truly a solution that is greater than the sum of its parts and will enable even more exciting experiences to delight consumers, service providers, content providers and game developers alike,” said Robbie Bach, president of Microsoft's Entertainment and Devices Division.

The IPTV-enabled console will provide elements of both interactive TV service and video games in a single hardware device. IPTV on Xbox 360 will allow TV viewers to access Xbox Live voice chat and text messaging — all while watching TV. The device is also enabled to allow users to play a game on Xbox Live while recording a show in the background.

Delivering the keynote address at the Consumer Electronics Show in Las Vegas this week, Bach hinted at the device’s potential social networking capabilities, saying it will “make it easy for people to access and discover their favorite content and share their personal experiences with the communities they are part of.”

Microsoft has sold more than 10.4 million Xbox 360 consoles in 37 countries, Bach said. Besides AT&T in the U.S., other telecom companies in England, Germany, France and Switzerland have developed Microsoft’s IPTV Edition software.

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