Microsoft sells off Mediaroom to focus on Xbox TV

Microsoft sells off Mediaroom to focus on Xbox TV
Craig Chapple

By Craig Chapple

April 8th 2013 at 4:35PM

Console giant to dedicate all of its TV resources to make console the 'premium entertainment service'

Microsoft has sold off its TV streaming business Mediaroom to Ericsson as it looks to expand and go all in Xbox TV.

Revealing the news in a blog post, Microsoft Interactive Entertainment exec Yusuf Mehdi said the sale meant the console giant could dedicated all of its TV resources to Xbox as it looks to make the console the “premium entertainment service” for consumers.

Mehdi added that Microsoft would be partnering with a number of content creators, studios, labels, networks, content aggregators, operators and distributors to deliver the next wave of games and consumer entertainment.

"We are proud of the world-class engineering and business achievements within Mediaroom,” he said.

“They have a rich history of driving innovation in IPTV. As early pioneers, they built the infrastructure to stream video on limited bandwidth, and today they enable multiscreen entertainment experiences for pay TV subscribers. Mediaroom has contributed to the evolution of TV and powers 22 million set-top boxes today in 11 million subscriber households.

“With the sale of Mediaroom, Microsoft is dedicating all TV resources to Xbox in a continued mission to make it the premium entertainment service that delivers all the games and entertainment consumers want – whether on a console, phone, PC or tablet. And with 76 million Xbox 360 consoles around the world with 46 million Xbox LIVE members, it is a mission that gets us out of bed in the morning.”

Microsoft recently opened Xbox Entertainment Studios in LA, as part of its strategy to make the console an entertainment hub, rather than just a gaming machine.

The new studio will be responsible for creating original content for the Xbox, as well as overseeing live interactive events.

During 2013, the console giant plans to launch more than 40 new voice-controlled customised TV and entertainment apps for the Xbox.