In Talks with ESPN, Xbox to Challenge TV

By Andrew Gauthier 

The New York Times

Executives at Microsoft are fond of saying that its subscription gaming service, Xbox Live, should be thought of as a cable channel.

They want Xbox to be seen not merely as a gaming machine for teenagers, but as a media portal for parents and grandparents, too. The company is even producing shows for users: it is in the middle of the second season of “1 vs. 100,” an interactive version of a game show that was on NBC.

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The content ambitions do not end there. Microsoft has held in-depth talks with the Walt Disney Company about a programming deal with ESPN, according to people close to the talks, who requested anonymity because the talks were intended to be private.

For a per-subscriber fee, ESPN could provide live streams of sporting events, similar to the ones available through ESPN 360, a service that is available from some high-speed Internet providers. More…

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