Microsoft understands that going forward, having the same titles side by side with the PlayStation 3 is not going to be enough to give them a competitive edge. With PS3 console sales picking up quite a bit in recent months, the 360 instead enjoys of an already large user base that is unlikely to see exponential growth. The software giant has teamed up with a Hollywood production team with the intent of creating exclusive entertainment content for the Xbox Live
. The company, Safran, will help distributing shows via Xbox Live, adding on to the existing portfolio the console has for video.
A Microsoft spokesperson likened the partnership and further services on Xbox Live as an “on-demand television channel” - an evolutionary step console makers have been touting for a few years now but that is just beginning to take place. Microsoft's aim is largely similar to Sony's, with the console becoming a “media hub” as opposed to a plain game platform. The hardware certainly has the capabilities to do it, and the popularity of Xbox Live, sitting at 10+ million users, makes it very feasible.