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.

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"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.

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