Microsoft's Xbox to have Streaming TV service?

Microsoft is reportedly in talks with major TV networks about having its Xbox Live service stream TV channels in the United States. This would be an interesting move on the company's part as it would allow an Xbox 360 user to not only play games on their console but also stream TV channels though their Xbox.

From what is reported, Microsoft already allows Xbox 360 owners to stream TV onto their console via AT&T's U-verse service, but how about having other networks to do the same? Microsoft is reportedly working with Australian TV network, Foxtel, in bringing a wallet-friendly cable package to the Xbox 360.

Targeted towards a younger male audience, Microsoft hopes to enter the video streaming arena using its Xbox platform. Microsoft is in a heated battle internally as many employees in the company believe that the Xbox franchise should remain as a gaming platform. Others are arguing that the Xbox platform already does video streaming and should evolve into something more than just games.

In a recent interview, the head of content acquisition for Xbox, Ross Honey, mentioned, "Microsoft Xbox is very interested in delivering great entertainment to consumers, entertainment in the broadest sense. From our perspective, gaming and TV are going to coexist."

Just recently, Microsoft brought Kinect support to the Xbox 360 for the popular Netflix application which allows for voice or gesture control of the Netflix interface to select any content.

This would be an interesting move on Microsoft's part and would perhaps change the way we look at console gaming. Perhaps the days of a console being used simply for gaming will be over. How do you guys feel about having a streaming tv service via your Xbox? Post your comments!