Remember how we mentioned that Microsoft had filed for a patent on DVR-capabiities for their NextBox and it looked like they were going to try to turn the Xbox into your home TV source? Well, it looks like that won't be happening any time soon.
According to Reuters, Microsoft had been chatting with media companies about creating an online subscription service for TV shows and movies, but they have decided to stop further progress due to the high prices of licensing.
Microsoft's vision for Microsoft TV would include a monthly subscription fee similar to Netflix and Hulu, but they also wanted the ability to stream network TV live. This latter portion of the vision was ultimately the cost killer.
So instead of their original plan, Microsoft is working on distributing TV shows via their Xbox through consumers' exisiting cable subscription plans. This is similar to what Sony has done with NFL Sunday Ticket, and it excites me in that exact same way—nil.
I am very interested in a pay-for-what-I'll-watch plan, whether it's through my TV provider, my video game console, or a third-party subscription service. I, however, have no interest in watching TV through my Xbox when my cable box works just fine. Just seems like an unnecessary step to me.