Microsoft sells IPTV platform, dedicating all TV resources to Xbox

Tech giant sells Mediaroom to Ericsson for undisclosed sum, as company plans to "commit 100 percent of its focus on consumer TV strategy with Xbox."

Microsoft announced today that it has agreed to sell its IPTV platform Mediaroom to Ericsson, as the technology giant dedicates all its TV resources to Xbox moving forward.

"It allows Microsoft to commit 100 percent of its focus on consumer TV strategy with Xbox," Interactive Entertainment Business corporate vice president of marketing and strategy Yusuf Mehdi said in a statement.

"With the sale of Mediaroom, Microsoft is dedicating all TV resources to Xbox in a continued mission to make it the premium entertainment service that delivers all the games and entertainment consumers want--whether on a console, phone, PC, or tablet," Mehdi added.

The executive further explained that it is Microsoft's ambition to partner with other players in the industry to deliver the "next wave of innovation in games and consumer entertainment." These partnerships include content creators, studios, labels, and networks, Mehdi said.

"We believe the future of home entertainment is one where TV becomes more simple, tailored, and intelligent. We believe the best is yet to come for this industry," he added.

In September, Microsoft announced the formation of a new Los Angeles, California-based studio to develop "interactive and linear content for Xbox and other devices." The outfit is led by former president of GameSpot's parent company CBS Network Television Nancy Tellem.

Microsoft launched Mediaroom in 2007. Since then, the Internet protocol television platform has been adopted in 11 million households using the service to power 22 million set-top boxes, the company said.

Microsoft is rumored to announce its next-generation platform--code-named Durango--on May 21.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

Want the latest news about Xbox 360?

Xbox 360

Xbox 360

Discussion

158 comments
Valen_Ca
Valen_Ca

Excellent maybe this means that they will use the money they got to pull those stupid ads from the dashboard, hell Sony has a free service and they don't serve you any annoying ads.

Necro_Fear89
Necro_Fear89

I have more ads on my 360 dashboard than I have spam on my e-mail inbox, as slow as the PS3 dashboard is it is nice and ad free. I no longer have XBL Gold and I have even less ads now, also is a picture of Gears of War Judgement telling me to "GO GOLD" supposed to entice me to do so? Because it's not.

KBABZ
KBABZ

So wait, is the Xbox a games console or a Netflix platform?

Phazevariance
Phazevariance

Silly idea but maybe... wait until they announce it to see what their true intensions are?  Jus tbecause we have no idea what they are doing 'game wise' doesn't mean they are doing nothing.

Carreau13
Carreau13

I want my xbox to play games. I don't want any of this media giant jazz. More reason to not get the 720 apparently.

Coren_Larken
Coren_Larken

Jeez. I already feel like I have an entertainment superstore in my living room. The xbox dashboard gives me a headache. Marketing, marketing, marketing. Jeez. And now I'll have to put up with more.

TheMisterCheif
TheMisterCheif

THERE IS MORE OF A MARKET IN SET TOP BOX THAN THERE IS IN GAMING. 

Daemoroth
Daemoroth

I thought a gaming console was for gaming? I mean, it's in the name, isn't it? Did I miss something?

soulless4now
soulless4now

I would've thought that games would be its focus. Silly me for giving them too much credit. 

wavelength121
wavelength121

sorry, i make it a point to stay away from anything involving that freak Lady Gaga.

MonoSilver
MonoSilver

Ok maybe I should rephrase my previous comment. I have a TV and a way to watch all the channels I need without a subscription (a freeview box) and those without a freeview box will have Sky. At least here in the UK. 

So who is this targeting and what is the point? Also if you're interested in streaming stuff aren't you already registered on sites like Netflix? It seems completely pointless.

firedrakes
firedrakes

the god awful when it works media room

Double-Ego
Double-Ego

Ahhh the machine has shown it's true face~! A glorified TV box with some gaming on the side.

Screw you guys i'm going Sony.  

#dealwithit

Solid_Azeus
Solid_Azeus

Why don't we all wait to see what the official news is for the next-box. I know i'm getting the PS4 but not sure yet about the nextbox. Let's just say we now have a rough idea of the worst the nextbox could be or do we?

pwc2
pwc2

Too bad MS doesn't give a rip about it's customers anymore. :(

rulo90
rulo90

It was not only enough with Oath BS ... and now this.. Im changing PS4 here we go.

Nickolaz666
Nickolaz666

Remember PS3's It only does everything campaign. 

Anybody else feel that is Microsoft's new plan of attack. We all know how well that worked for sony... Sony has learned from their past console and has decided on a Gaming Console.

El_Zaggy
El_Zaggy

Will the tv needs to be always connected to the internet to works ? How much is the monthly fee to made it work ?

MatrixGamer78
MatrixGamer78

Why not MS launch a TV set?? problem solve :P

crusadernm
crusadernm

People are getting to antzy for Xbox news.  Just wait and have patience.  Stop reading rumors if they upset you and wait til E3.  MS already gave a countdown notice.

surferosh
surferosh

combining info from two other NextBox news items -

1) a Windows blogger - He said this a confirmed feature for the platform, claiming the system's notes specifically state that the Xbox 720 "must be Internet-connected to use."

2) cost is about $500 if you dont get it on subscription..surely that is slightly higher than what most people expected..

xOmniCloudx
xOmniCloudx

I'm not a fan of their consoles but even I can admit that they're good for the gaming industry business wise. They bring a lot of money into it and the competition forces Sony to try harder and made them come off their high ass horse that they needed to be knocked down from. But seriously, why the fuck is Microsoft so intent on making their video game console not be a video game console first? The 360 went completely down the drain the past few years as MS stopped supporting it as a gaming console and turned it into the Kinectbox. 


Now they're taking it even further with the new one. Plus the always online shit witch essentially makes it something you rent rather than truly own. They've been fucking up their OS for years now, why do they want to do the same to their console too when they were so successful when they focused on the point of its existence? People are not responding well to this and their gamer market will shrink seeing the alternatives out there. Just make a separate platform for heavily focused non-gaming related stuff... 


3Dsoldier
3Dsoldier

@Necro_Fear89 gold is a rip off imo, always was and will continue to be, if they don't change something on it. I have gold simply to do something that's free on PC and all other platforms, that is to play online.

Ravenlore_basic
Ravenlore_basic

@KBABZ NETFLIX... no they want Microflix would not be surprised if microsoft bought out some cable channels to bring over to xbox platform, or Netflix itself to have control over some content.  

BJCentral
BJCentral

Then just settle with a ps2, or Xbox. You know ps4 will follow the same approach. Look  at youtube, netflex, and epix. Playstation 3 just got the epix app and Xbox had that app for about six months already.

jeffrobin
jeffrobin

@Coren_Larken Perhaps it's because I live in New Zealand but I don't get any marketing on my Xbox Dashboard apart from game specials that discount older games. I hear about durrito ads etc. from other people on these boards, is it really that bad over there?

BJCentral
BJCentral

@Coren_Larken  Hey I don't mind seeing Maxwell the pig once in a while. You jealous because he's a Pig who Drives a Convertible.

Renato1984
Renato1984

@TheMisterCheif 

There is more of a market in selling Cocaine than in set top box.

There is more of a market in selling guns to american citizens than there is in selling cocaine.

alchie11
alchie11

@Double-Ego Yup. It looks like their 'strategy' into making the next Xbox compete with Tivo, Dish, Satellite, and Cable providers is coming into fruition. I don't know about the US, but up North here, most people own TV/Phone/Internet through a bundle and I highly doubt people would want to remove one of those plans for a cheaper service, thus increasing their bundle cost. On the other hand, Canadian Netflix sucks, so if M$ offers a better service, people may subscribe (replacing Netflix for Canada users).

surferosh
surferosh

@MatrixGamer78   probably the idea behind all this media integration could be that MS might want to compete with Apple for space in the 'family' living room...

jeffrobin
jeffrobin

@surferosh He did say that your first point was from a very old note. How old? Who knows, apparently he wasn't allowed to say that :P

jeffrobin
jeffrobin

@xOmniCloudx Vista was their worse OS and they have been improving since (haven't used Windows 8 yet though, it might be crap)

bledsoe45sbc
bledsoe45sbc

@xOmniCloudx i don't know why anyone is surprised by this , the 360 started out as a games machine , and morphed into a media box . and now they are designing it with that in mind from the ground up

crusadernm
crusadernm

@xOmniCloudx Same reason why phone developers just don't focus on making calls, but music, games, camera, video camera etc.

thebeachguy90
thebeachguy90

@BJCentral Yes but unlike Xbox, PS keeps things balanced and has continued to support the gamers.

Daemoroth
Daemoroth

@FAIL_TR0LL Or, I dunno, maybe they can focus on gaming, and have the other things as a sideshow? You know, how Sony seems to be going about all this? :)

Solid_Azeus
Solid_Azeus

@surferosh @MatrixGamer78 Competition for Apple in the living room? Apple IS the competition when it comes to all things mobile but not family living room entertainment. not even close

FAIL_TR0LL
FAIL_TR0LL

@surferosh @MatrixGamer78 

Somebody gets it! While there is a ton of potential money to be made from that market, they have a tall order ahead of them. People love those Apple products.

xOmniCloudx
xOmniCloudx

@jeffrobin @xOmniCloudx Windows 8 is their worst OS hands down. I'm using it and trying to remove it now. Since I don't have W8 Pro it's a pain in the ass attempting to do so. Crashes many computers, incompatible with many programs and computer types, random file corruptions and deletion, many built in features that don't work, forcing a layout on you which even clashes with the standard one and trying to make everything on the computer an app for no damn reason. It doesn't work and is a beta. Vista was garbage when it came out. But it was LONG since fixed when they updated it with service pack 2. Many people trashing Vista were the people that never went back to it after it was properly updated.

xOmniCloudx
xOmniCloudx

@PSYCHOV3N0M @xOmniCloudx So it's pure coincidence that the many outlets that have close relationships with their gaming division are reporting? It also makes sense for Adam Orth, their console creative director (meaning the guy in charge of the content on the high level in terms of focus) to say deal with things like always internet connection for the upcoming console if it wasn't going to have one and commit PR suicide? There's too much behind this. The fact MS wont even shoot this down and have many patents in support of this makes it look even worse. I wouldn't put it past them at all honestly seeing all the business decisions they have made on several plaforms over the years for no reason other to seemingly lose money or fail. If they did do this, it's only hurting themselves. It'll be worse than the SimCity issue that people deal with even when they're always online.

xOmniCloudx
xOmniCloudx

@crusadernm @xOmniCloudx The thing is that phones unlike consoles aren't made as a format where constant release of hardware is needed to support it as well as primarily use it. The primary aspect of a phone is contacting other people. Thats why we still have basic phones that rely only on that. The extra features are just extra incentive for companies to entice people to buy their phone.

With a console the games are the main meat with everything else being the extra incentive. MS apparently thinks their console is a phone now as they are more focused on those extra incentives instead of the platform's main reason for existing. 

surferosh
surferosh

@crusadernm i suppose we will have to wait till the official announcement to see what MS have planned for us gamers.. after that, we will just have to deal with it

BJCentral
BJCentral

@thebeachguy90 You Right DAWG! But let's see what happens. It's a gonna be great year for both consoles.

Solid_Azeus
Solid_Azeus

@bledsoe45sbc @Solid_Azeus lol you can't even watch hulu on apple tv. I won't even go into all the inadequacies of the worst Apple product yet. A PS3 or 360 can do much more entertainment than apple tv. If Apple tv is all there is then trust me MS has nothing to worry about with family living room. 

jeffrobin
jeffrobin

@xOmniCloudx @jeffrobin Yeah every 2 or 3 OS's MS puts out a turkey. They do have a problem with bloatware, that's what happens when you employ too many programmers! Hopefully it isn't what happens with the new Xbox. Fingers crossed.