Xbox 360 IPTV scrapped by Microsoft for now

January 13, 2012

Xbox 360 IPTV scrapped by Microsoft for nowLast year Microsoft made a huge deal about its new IPTV service that would be coming to the Xbox 360. The initiative came from the big man himself, Steve Ballmer. However, it looks like Microsoft may have gotten ahead of itself on this deal.

We have been reporting rumors of that this service would be coming to the Xbox 360 for a couple years now. I was excited about the news when it was officially announced back in October with a long list of content partners. However, there was skepticism around if Microsoft could pull off something others had difficulty doing.

Unfortunately, despite the long list of partners shown during E3, the service went nowhere fast like the Xbox Game Room. Remember when Microsoft promised that 1000 virtual arcade cabinets will be released over a course of three years back in 2010? Well the last update it received was back in 2010 and this news of an IPTV pretty much went the same way.

According to Reuters Microsoft changed its mind about IPTV once the company found out how expensive the TV networks were willing to charge for it. Did Microsoft fall asleep during Hulu’s ordeal with the networks last year?

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