The battle for the future of the American television viewing experience is about to gain another combatant.
The new venture, following previous forays into living rooms with WebTV, would pit the software giant against rivals Google, Apple and Netflix, each of which plans its own TV-based service.
A current idea being floated by Microsoft is turning the XBox itself into a "virtual cable operator." Under this option, users would be charged a monthly fee to access major networks like ABC, NBC, Fox or ESPN.
Other options would allow for cable subscribers to use the XBox for viewing shows with interactive features, creating specialized programming bundles, or selling individual channels directly to subscribers.
Microsoft did not respond to Reuters' request for comment, but sources told the news wire that the TV service could possibly be running within a year.