Microsoft’s Stealth Internet-to-Living-Room Entertainment System: the Xbox

xbox360movies3 In a new report, Microsoft brags that their Xbox 360 system accounts for an interesting level of entertainment use above and beyond video games. “While people are still playing a ton of video games, 40 percent of all Xbox activity now is non-game.” According to the stats, Xbox owners watch an average of 30 hours of streaming video a month.

With the Internet-entertainment-to-living-room heating up, multiple vendors and publishers are trying to push themselves atop the television set for all those couch potatoes whose eyeballs would otherwise be going to cable or the airwaves. The Next Web covers expectations of Microsoft’s “into the living room” strategy,

Microsoft’s content strategy seems to be paying off. By partnering with Hulu, Netflix, and ESPN (and by integrating Zune with its media relationships), the Xbox 360 console located in the living room has access to enough video related content to give gaming a run for its money in terms of sheer consumer options.

According to the company, some 53 million Xbox 360 consoles have been sold, and there are now 30 million Xbox LIVE members. The rise of Xbox as more of a media platform, and less of a pure gaming machine, is no accident: “you’ll see Xbox marketed more as an entertainment brand this year,” Microsoft said.

While other companies are fighting to insert themselves into the living room, Microsoft has already made the leap with a device more than capable of delivering streaming movies, Internet TV, and more. The stats themselves tell the story and the Xbox 360 isn’t even trying yet; although this tune may change dramatically with E3 on the horizon.

The first steps we’ve seen that will turn Xbox into a fully-fledged entertainment center have been in the previous months when Hulu Plus made its foray into Xbox LIVE at the end of April (enticing users with a free week of streaming Internet TV service.)

Due to the sheer popularity of Xbox, as an entertainment console it’s already present in a multitude of living rooms already connected to the television that other distributors and vendors want to be part of. Everyone is gunning for this highly desired position—Roku, Boxee, Apple TV, etc.—and Microsoft already has a beachhead that they can expand to into a full-on invasion without even having to sell extra hardware to likely customers.

The next stage for Microsoft to move Xbox LIVE into position as an entertainment center will be partnerships with major Hollywood content producers such as HBO, Time Warner, Disney, and other movie studios. It’s either that or they’ll tie in media distributors to get onto this already mighty network empire of customers ready-and-willing to use their video game consoles to watch video.

These media distributors would be very silly to ignore such a powerful and immediate partnership as both Netflix and Hulu have already positioned themselves to reap the windfall.

About Kyt Dotson

Technology and civilization walk hand in hand and civilization is nothing without the skin of society, brushing up against itself, speaking strange nothings across dimly lit avenues and computer screens. If we're going to understand ourselves in this digital era, it will be through watching the adoption of technology by people to express themselves as people. I am an anthropologist and an author of science fiction and fantasy--and with my technology, I hope to open up new and exciting worlds that will not just enlighten the humanity of my friends and fans but also educate and enhance the expression of their own personhood. Find more of my work on Google+.
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  1. [...] their number at the conference, though the platform is also attracting more and more gamers for other entertainment purposes, Microsoft revealed in a [...]

  2. [...] Microsoft’s press event at E3 revealed a new direction they intend to take the Xbox—into the realm of becoming an Internet entertainment center—but also away from trapping all of their content on that box by allowing players to carry their [...]

  3. [...] as we’ve seen that Microsoft is trying their best to enter into the console as entertainment center venue, this might give Nintendo a distinct edge if they decide to go the same direction. Where Microsoft [...]

  4. [...] the power of the Kinect system, and the opportunities it opens up for Microsoft.  They’re transforming the Xbox from a game console to a media center that plays movies, television, music, DVDs, Bing, and oh yes, games too.  With that sort of plan [...]

  5. [...] the iPad is trying to get into games, Microsoft’s xBox is trying to become more than just a gaming console by engaging into non-game activities. Microsoft claims [...]

  6. [...] the power of the Kinect system, and the opportunities it opens up for Microsoft.  They’re transforming the Xbox from a game console to a media center that plays movies, television, music, DVDs, Bing, and oh yes, games too.  With that sort of plan [...]

  7. [...] a iPad is perplexing to get into games, Microsoft’s xBox is trying to turn some-more than only a gaming console by enchanting into non-game activities. Microsoft [...]

  8. [...] the iPad is trying to get into games, Microsoft’s xBox is trying to become more than just a gaming console by engaging into non-game activities. Microsoft claims [...]

  9. [...] much gamer data into the Internet and could draw in media from around the globe. As predicted, the Xbox is the perfect stealth Internet-to-living-room entertainment system and with its huge adoption rate among middle-class consumers—and a staggering 55 million units in [...]

  10. [...] doubt this will move the Xbox from stealth living room entertainment centerpiece to the position of a terrible Internet god of digital delight sitting atop the [...]

  11. [...] at SiliconANGLE have been watching this trend for a while now and waiting for Microsoft to pounce. After all, we’ve seen reports that streaming video is a big factor in console usage according to [...]

  12. [...] at SiliconANGLE have been watching this trend for a while now and waiting for Microsoft to pounce. After all, we’ve seen reports that streaming video is a big factor in console usage according to [...]

  13. [...] The Xbox for the new generation will become the all powerful all-in-one living room entertainment system. Microsoft has been building towards this expectation for a very long time now, by pulling in more and more media-centric elements to the Xbox, adding cable, increasing Internet connectivity, and building out into the cloud. This will complete Microsoft’s march into the living room as a set-top all-in-one entertainment center. [...]