Microsoft has used the Xbox 360 to push into the entertainment space, progressively adding more and more offerings to its array of Xbox TV apps. The company is apparently satisfied with this direction, as it's agreed to sell off the IPTV platform Mediaroom to Ericsson. It will now focus the full brunt of its TV efforts on the Xbox.
Microsoft officially christened Mediaroom in 2007, as a transition from its old Microsoft TV initiative. The IPTV service feeds live TV, on-demand, and DVR functionality to a range of devices, and boasts 8 million subscribers according to its official site.
A post on the company blog (via Games Industry International) announced the sale, and stated very clearly that it will commit "100 percent of its focus on consumer TV strategy with Xbox." It notes that this will be a "continued mission" to deliver games and entertainment on console, phone, PC, and tablets.
We heard speculation that the Xbox 360 would utilize Mediaroom years ago, but that was long before Microsoft hit success with its strategy focusing on individual, specialized apps. Microsoft's plans for the next Xbox are still under wraps, but this is clearly the next step in transforming the Xbox brand from gaming to general entertainment.