Microsoft must make Xbox TV - Gaikai

Microsoft has reportedly backed away from launching its own cable television network for Xbox Live, but Gaikai's David Perry believes the company should be going in the completely opposite direction. Speaking with CVG today, Perry said that Microsoft has no choice but to go so far as to launch an Xbox-integrated TV.

The move would be one of competition, Perry believes, as cloud gaming networks, such as Gaikai, enable gamers to stream content directly to their television sets without a dedicated box. Perry argues that because Sony already has TV-manufacturing capabilities and Apple has signaled its own intent to enter the space, Microsoft risks being left behind.

"Digital TVs are including all of that media stuff," Perry said. "I think the mistake that the console companies are making is not a mistake of their choice--it's the evolution they have to go through. Once the other media hubs can have games--and I don't mean Checkers, but things like Call of Duty--the public will get confused."

In January, Gaikai announced that it had signed a deal to incorporate its game-streaming technology into LG televisions. The LG Cinema 3D TVs incorporating Gaikai's technology are expected to launch in 2012.