Xbox 360 to function as AT&T U-verse IPTV cable box

The Microsoft Xbox 360 will enter the 2010 holiday shopping year with a wide variety of streaming options for consumers, as cash-strapped shoppers think carefully about what they want to spend money on.

The Xbox 360 offers game playback, movies and TV streaming, high-definition content, music, and aims to become even more involved in the living room. Microsoft still refuses to embrace Blu-ray, but wants to help Xbox 360 owners adopt streaming services.

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Microsoft and AT&T will team up and finally launch the U-verse streaming service through the Xbox 360, after more than four years of delays.

In order to use an Xbox 360 as an AT&T U-verse device, it must have a hard drive and the customer must already have a separate U-verse box in the home elsewhere.

The service is scheduled to launch on Nov. 7, but will be officially introduced later this week. AT&T subscribers will be able to chat and interact with Xbox Live friends even when watching TV. Subscribers will need to pay $99 for an Xbox kit and $55 for software installation on the Xbox 360.

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Microsoft has rightfully paid attention and made sure the Xbox 360 can function as more than just a gaming console.

However, both the rival Sony PlayStation 3 and Nintendo Wii game consoles also include streaming features. Netflix, Hulu, and other services have embraced streaming services and are now competing for attention from consumers.

I remember visiting the Microsoft Silicon Valley headquarters on several occasions over the past few years, with streaming content always an interest. During the Halo 3 launch in 2007, the company had several live home entertainment demonstrations for visitors in the Mountain View, Calif. office. Since then, the company has worked to introduce a wider variety of streaming solutions for visitors.

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It's good to see Microsoft and other companies embrace streaming, especially after the launch of Google TV and other companies that have come to the market.

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