Microsoft in talks with Comcast, Verizon for Xbox TV?

Microsoft's Xbox 360 console is supposed to offer some kind of live television service before the end of 2011. But Microsoft has been pretty silent about the details surrounding the Xbox TV feature. Now a new rumor may offer a clue as to Microsoft's plans for the service. Digiday, citing "multiple" but unnamed sources, is reporting that Microsoft is in talks with both Comcast and Verizon about offering content from their cable TV divisions to users of the Xbox 360.

This would seem to put more credence to previous rumors that Xbox TV might simply be a way for cable TV companies to use the console as an alternate to the standard cable set-top box. If this turns out to be true, people who own the console will be able to watch Comcast and Verizon FiOS cable TV programs, check out on-demand programming, play Xbox 360 games, download and purchase movies via the Zune service and stream movies and TV shows via the Xbox 360 from Netflix and Hulu. That could made the Xbox 360 console a one stop shop for a ton of entertainment.

In fact users of AT&T's U-Verse have already had the capability of using the Xbox 360 as an alternate set-top box for nearly a year. Microsoft also has similar deals with cable TV companies in Australia and in parts of Europe. Today's story also claims that Microsoft is looking to add a version of Windows Live for gaming inside televisions, with Samsung mentioned as one possible company interested in such a feature.

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