Rumor: Comcast and Verizon are supporters of Xbox TV

During E3, Microsoft announced live television (both local and national channels) will be coming to the Xbox 360. Since then, details about the service have been scarce. One of the biggest questions was whether the Xbox 360 would compete with traditional cable providers, or merely work beside them. Sources for Digiday are now saying Microsoft isn’t going to go head to head with cable providers. The Xbox 360 will serve as an alternative cable box instead.

Even though official agreements have reportedly not been made, Microsoft is said to be in discussions with Comcast and Verizon Fios.

Here’s how a potential partnership with Comcast may work for example:

When you sign up for Comcast cable service, a technician comes to your home to set up your Comcast cable box. That wouldn’t be the case with the Xbox 360. Customers could have the ability to use the Xbox 360 as a cable box. They could even sign up for cable access from the Xbox 360.

Comcast is currently the largest cable provider in the United States. Given millions of Xbox 360s in U.S. households, Comcast could see a nice boost in customers.

Microsoft is also supposedly in talks with companies such as Samsung to integrate Windows Live into internet-connected televisions.

The deals between Verizon Fios and Comcast could be official in a month’s time.

Via [Digiday]