Engadget:
Reuters says MS has been meeting with media companies in an effort to create an entirely new TV service possibly delivered through the Xbox 360. Apparently there are multiple options on the table, ranging from a full-on “virtual cable operator” with monthly fees to using the 360 as an extension of existing cableco online TV initiatives to simply delivering certain channels like ESPN and HBO a la carte, and Reuters’ sources say the plan might take another 12 months to develop.
With a massive install base of over 40 million units the Xbox 360 could very well become the trojan horse of over-the-top video services.