There wasn't a whole lot of details flapping around when Robbie Bach announced that British Telecom would be the first company to team up with Microsoft to offer consumers an Xbox 360 set-top IPTV box.

Fortunately the BBC was able to squeeze some details about the box out of British Telecom. Chief among them is the fact that despite rumors, and our fervent desires, the box will not be able to receive or record live television. Boo!

The service actually sounds like a more robust version of the Video Marketplace Microsoft already offers on the box.

As well as access to BT's library of on-demand content, users will also be able to watch hundreds of movies and other digital content, including its near-live FA premier League football matches. ... "The reason for streaming only on the Xbox is because currently the console does not have the capability for live TV or enough hard drive for practical downloading of content," explained a BT spokesman.

Well that sucks.

Xbox will host BT's TV service [BBC]

British Telecom will be the first cable provider to allow you to buy an Xbox 360 that can be used as a set-top box for IPTV, Robbie Bach announced tonight during Bill Gates' CES keynote. Gates first announced his plans to try and roll out the Xbox 360 as a set-top box at last year's CES. No word on what else might be inside this IPTV 360, like say a DVR. Sounds like the rumor was sort of half right.

To check out more of what Gates and Co are talking about during the keynote make sure to check out our liveblog from CES.

Turns out that IPTV option loaded into an Xbox 360 during a repair was a mistake not a sign of things about to hit. Microsoft told Joystiq that the IPTV feature seen in several screen caps were real, but a mistake.

"Internet Protocol Television (IPTV) features will only be available from the Xbox 360 through a service provider who has deployed Xbox 360 with Microsoft Mediaroom (IPTV) services. This was an isolated incident where these features were inadvertently exposed while the customer's console was being serviced and is unrelated to the Fall Update. Xbox 360 with Microsoft Mediaroom (IPTV), will be available to service providers by the end of the year. Microsoft's IPTV service providers will ultimately determine the timing of Xbox 360 with Microsoft Mediaroom deployments."

So we're back to where we started. We know IPTV is coming by the end of the year and that it will be through service providers. What we don't know is which service providers are going to bite the bullet and test the feature out.

Microsoft: IPTV not a part of Xbox Live Fall Update [Joystiq]

Oddly, the tipster is running the same dashboard version as the rest of us (2.0.5787.0), so how this ended up on his system is unknown. As you can see from the photo, the features listed are: Live & recorded TV, On-demand movies and Chat while watching TV. If all this turns out to be true, it could mean a pretty spiffy update when it finally rolls around. If it's not true, feel free to head over to Xbox 360 Fanboy and register your many outraged complaints there.

Rumor: Leaked screens show IPTV and Fall update [Xbox 360 Fanboy]

``With this partnership, Mega TV will include high-definition games and Blue-Ray media in its periphery,'' said Lee Young-hee, chief of the Media Center at KT. ``We will seek more cooperation with SCEK to create synergy.''

"Separately the Xbox 360 and Microsoft TV IPTV Edition deliver unique and exciting entertainment experiences, but IPTV on Xbox 360 delivers a real value proposition for consumers, service providers and content and game developers alike. By integrating these industry-leading solutions, we continue to drive innovation and enable new connected entertainment experiences for consumers."

Microsoft to showcase IPTV on Xbox 360 for the first time in Europe at The Connected Home

Microsoft will showcase IPTV on Xbox 360 for the first time in Europe at The Connected Home show to be held in Olympia, London on 5-7 March, 2007 (www.the-connected-home.co.uk). Ed Graczyk, Worldwide Director of Marketing and Communications for Microsoft TV, will demonstrate IPTV on Xbox 360 during his keynote at the conference, entitled "Future of Connected Entertainment".

The demonstration will showcase what happens when next-generation television is combined with next-generation gaming in a unique, new service delivered by your broadband provider. Graczyk commented, "Separately the Xbox 360 and Microsoft TV IPTV Edition deliver unique and exciting entertainment experiences, but IPTV on Xbox 360 delivers a real value proposition for consumers, service providers and content and game developers alike. By integrating these industry-leading solutions, we continue to drive innovation and enable new connected entertainment experiences for consumers."

IPTV on Xbox 360 is expected to be available through select service providers as early as the holiday season in 2007. Some of the world's largest telecommunications service providers have chosen Microsoft IPTV Edition as their IPTV software solution, with scaled commercial deployments currently under way with AT&T, BT Group PLC, Deutsche Telekom, T-Online in France and Swisscom.

Ian Johnson, Managing Director of Junction Group Ltd, organiser of the IPTV World Forum (www.iptv-forum.com), commented, "This will be a unique opportunity to witness first hand the possibilities which IPTV offers to service providers and to the online gaming market and we are delighted that Microsoft has chosen the IPTV World Forum event to showcase this demonstration."

The Connected Home Show (www.the-connected-home.co.uk) will be co-hosted at the third annual IPTV World Forum and will be held in Olympia, London on 5-7th March 2007. www.iptv-forum.com

GS: What can you tell us about the HDMI-enabled Xbox 360 rumors that have been going around?

CS: We're always working on prototypes and new technologies and just playing with stuff in Redmond to see what's interesting. I think at the moment we have the widest available connections on the system. If you want to get great HD, I think we've got a good solution for that. In the future it's interesting to see where standards evolve to. I think one of the problems that the whole industry, us and entertainment, are facing at the moment is we're in this world where standards are evolving very quickly.

We have different high-definition standards for discs that we know are competing at the moment. We think HD-DVD is going to be the right way to go, but really it's all about choice in that system so that's why we're offering these sort of services with downloads—skip that whole "format wars" problem. With other standards, audiovideo standards, they're evolving very quickly as well. We're obviously keeping an eye on that and saying, "What are the future standards and how do we give consumers the right choice for that?"

At the moment, everything you might have seen is just looking at our experimentation back in Redmond, not really a product that we're thinking about announcing.

The interview is a must read, Satchell also talks about whether IPTV is coming to all Xbox 360s or just a specialized model, sales, the PS3 and the Wii. Brian Crecente

CES 07 Q&A: Microsoft's Chris Satchell [Gamespot]

With Greenberg driving, he showed that the IPTV service was up and running, live on an Xbox 360 nicknamed "Carbon." This was a point that Greenberg and Moore drove home several times. Despite the fact that the service will not hit the 360 until the "back end" of 2007, the streaming programming and DVR functions were working like an already shipped product. While we didn't get a chance to check out Live features like text messaging and voice chat with the IPTV service running (network connections were spotty in the press tent), the platforms are seemlessly integrated.

Picture-in-picture in HD is perfect, allowing you to continue to watch your main program in the background, with a full screen menu overlay and alternate channels running flawlessly at the bottom. Moore also let slip that newer features, like caller ID with the system hooked up to a landline, would also be available.

When asked about larger hard drive space to hold all that programming, as well as game saves, trailer and demo downloads, Greenberg said that he thought the current hardware configuration with the 20GB drive would serve most families, but that those in need of more space would probably need a "potential upgrade." Not exactly confirmation of a new 120GB drive, but we all know it's coming.

I asked the pair if Core Xbox 360 owners would be able to take advantage of IPTV. They told me it was technically feasible as it's a software solution, but that, obviously, DVR functions would be useless.

Video and interface on the IPTV were as clear as the content already available for download on the Video Marketplace. Using the Xbox 360 Universal Media Remote, channel changes were instant. Moore complained of the current 1-2 second lag when surfing via satellite (he's a DirectTV subscriber) then quickly followed up with "I know that complaining about one second lag makes us sound like spoiled brats..." Nah. Totally justified.

We spent less time looking at the Video Marketplace, as the service has been live for some time. Microsoft was very proud of the fact that they're the #2 digiital distribution platform for video content (behind iTunes) and the #1 provider of HD content. As we strolled through the current offerings like Jackass, UFC matches, and Aqua Teen Hunger Force, I asked when the content would start to appeal to a broader audience. Peter responded with "When the time is right." He pointed to CSI and the inclusion of major networks as a good indicator as to the breadth of content appeal, but didn't lead me to believe an active effort to secure Lifetime original movies was on their to-do list.

I'm hoping that that 120GB version of the 360 is announced soon, as I'm going to be fully on board with the IPTV service. It looks like an excellent replacement for folks looking for an alternative (or add-on) to satellite and cable subscribers, I just need that extra storage. I'm a bit of a digital content packrat.

Oh, and about Peter Moore crying. He admitted to weeping like a little girl at the end of Peter Jackson's King Kong which was playing on the HD-DVD add-on when I entered the room. Wuss! Michael McWhertor

Gamers will be able to watch and record television on their console in the background while playing games on Live, Bach said.

The new service is expected to hit by this holiday and will be offered by "providers that are deploying TV services based on Microsoft TV IPTV Edition."

"Our goal is to make entertainment more personal, more interactive and more social," Bach said. "IPTV on Xbox 360 and Xbox Live are powerful examples of ways we are bringing together the worlds of gaming, TV viewing and community to make it easy for people to access and discover their favorite content and share their personal experiences with the communities they are part of."

Bach also revealed that the company has sold 10.4 million Xbox 360s to date and has 5 million Xbox Live members, though they did not say, nor could Gates clarify, how many of those were paid subscriptions.

In an chat earlier in the day, Gates said that at least half of the 5 million were paying, gold members. Finally, Microsoft said that people have downloaded more than 100 million pieces of content to their 360, including games, television shows and movies.

Hit the jump for the full press release.

Microsoft Unveils Wave of New Products and Services at CES
Bill Gates and Robbie Bach hit play on new releases from Windows Vista, Xbox 360, Microsoft TV and more.

LAS VEGAS — Jan. 7, 2007 — Speaking at the 2007 International Consumer Electronics Show (CES) in Las Vegas, Microsoft Corp. Chairman Bill Gates and Microsoft Entertainment and Devices Division President Robbie Bach showed how the company is delivering a new generation of connected experiences that are inspired by the universal desire to create community and share interests and passions with friends and family.
Gates and Bach announced several new products and services that include new Windows Vista -inspired PCs, never-before-seen Windows Vista features, an Internet Protocol Television (IPTV)-enabled Xbox 360 video game and entertainment system, and a new partnership with Ford Motor Co. that will extend digital experiences to the car. The company also unveiled Microsoft Windows Home Server, which provides a central place to help store, protect and access all the digital content in the home.
"As the magic of software makes it easier for people to be creators, publishers and consumers of digital content, it is expanding the way we think about community and entertainment," Gates said. "From your living room to your car, we're delivering a wave of new software products and services that make it easier for you to manage your day-to-day lives, express your ideas and share your interests."
Windows Vista: New Features Revealed as Countdown to Launch Begins
With less than a month to go until the Jan. 30 consumer launch of Windows Vista and the 2007 Microsoft Office system, thousands of PC manufacturers and system builders across the globe are preparing to deliver new PCs designed to run the new versions of Microsoft's flagship Windows and Office products. By Jan. 30, more than 1.5 million devices will work with Windows Vista and more than 2,000 products will be Certified for Windows Vista, helping to make Internet and networking connections, home entertainment and business tasks faster, easier and more secure than ever.
As a part of his keynote address, Gates provided a first look at a number of Windows Vista features and announced several new content partnerships that will enable people to explore their interests and express their creativity with greater freedom than ever. For example, Windows DreamScene , available to Windows Ultimate customers through Windows Ultimate Extras, transforms the PC desktop from static background wallpaper into a full-motion, personalized video canvas. Windows Media Center SportsLounge in conjunction with FOXSports.com seamlessly combines live television, real-time scores and online sports media to keep people close to their favorite games, teams and players. Premium versions of Windows Vista will also offer brand-new content from existing partners and new ones, including, Nickelodeon, Showtime and Starz.
Gates also unveiled a series of exciting new Windows Vista-powered PCs that ranged from innovative desktop designs and ultra-portable models, all scheduled to be available Jan. 30, including the following:
The HP TouchSmart PC, a Windows Vista-inspired PC that introduces the convenient touch-screen experience to desktop computing, serves as a fast and easy-to-access information, communication and entertainment hub designed to fit wherever life happens: in the kitchen, family room or living room.
The Toshiba Portege R400 is a Windows Vista-inspired signature mobile PC that incorporates innovative connectivity and display technologies to provide timely access to e-mail and appointments via Active Notifications and is built on Windows SideShow technology.
Sony VAIO VGX-TP1 is a stylish PC that delivers a high-performance entertainment experience so users can enjoy their favorite live and recorded TV and movies or surf the Web from their sofa using the wireless keyboard or remote control.
The Medion UMPC is an ultra-mobile PC that provides multiple input options such as a keyboard, a pen and touch capabilities and features the new Origami Experience, a user interface that optimizes entertainment and communications on the smallest class of personal computers running Windows Vista.
"Windows Vista is the catalyst for a variety of new hardware devices being made available to consumers," Gates said. "The result will be an incredible set of new connected experiences that link our interests, our communities and our desires in ways that extend across home, work and play."
With its powerful graphics capabilities, advanced parental controls, and connectivity to the Live games and entertainment network, Windows Vista promises to capture the imagination of 200 million hardcore and casual PC gamers alike. Titles such as "Age of Conan: Hyborian Adventures" (Eidos Interactive Ltd./Funcom) and "Crysis" (EA Partners/Crytek) take advantage of DirectX 10, and offer some of the smoothest, most lifelike visual experiences available on any gaming platform today. Microsoft also showed off "Shadowrun" (Microsoft Game Studios) and "Halo 2 for Windows Vista" (Microsoft Game Studios), the first of many titles that will enable gamers on Windows Vista to connect with their friends on Xbox 360 through the Live network. And for casual gamers, the company demonstrated a cross-platform game of "UNO!," with some players joining from their Windows Vista-based PCs and others joining from their Xbox 360 consoles.
"Windows Vista marks the biggest investment from Microsoft around Windows games since Windows 95, making games easier, safer and more fun to play on the PC," said Gates. "For consumers, we believe gaming is one of the top reasons to upgrade to Windows Vista."
The development of Windows Vista and the 2007 Office release are the result of an unprecedented collaboration between Microsoft and its customers and partners. After more than 5 million beta downloads of Windows Vista and the 2007 Office release, the two products were designed with the help of millions of customers worldwide, including 50 families from seven countries taking part in the Life with Windows Vista program.
Xbox 360 and Microsoft TV: Together Expanding the World of Games and Entertainment
In a move that will combine the power of Xbox 360 with Microsoft TV IPTV Edition, Bach provided an early look at a new service, IPTV on Xbox 360. The offering is expected to deliver world-class TV experiences such as digital video recording capabilities, with gaming, movie viewing, and even voice and video communications. Tapping into an expanded set of entertainment experiences, users will be able to watch their favorite sporting event live while chatting with their friends, for example, or participate in a match on Xbox Live while they record a TV program in the background. IPTV on Xbox 360 is expected to be available to consumers by holiday season 2007 and will be offered by providers that are deploying TV services based on the Microsoft TV IPTV Edition software platform.
"Our goal is to make entertainment more personal, more interactive and more social," Bach said. "IPTV on Xbox 360 and Xbox Live are powerful examples of ways we are bringing together the worlds of gaming, TV viewing and community to make it easy for people to access and discover their favorite content and share their personal experiences with the communities they are part of."
Microsoft TV IPTV Edition continues to strengthen its position in the market with deployments under way with five of the world's largest service providers and trials with 11 additional companies, representing a footprint across 14 countries on four continents.
Bach also showcased the strong momentum behind Xbox 360 and highlighted the company's success in delivering high-definition viewing experiences with HD DVD. Exceeding expectations by hitting the 10.4 million-console-sold mark this holiday season, Xbox 360 is the leading next-generation games and entertainment platform. It is also the largest social network in the living room, with 5 million Xbox Live members.
In addition, strong sales of the Xbox 360 HD DVD Player and strong demand for downloadable movies and television programs are a clear indication that increasing numbers of consumers see Xbox 360 as an ideal device for connecting to a broad range of entertainment experiences. In just over a year, people have downloaded more than 100 million pieces of content to their Xbox 360 consoles, which include game content, television shows and movies.
Connecting Digital Devices and Experiences at Home and on the Road
During his keynote address, Gates announced Windows Home Server, a new software product for families with multiple PCs that want to connect their home computers, digital devices and printers to help easily store, protect and share their rapidly expanding collections of digital content and entertainment. Later this year, HP plans to deliver the HP MediaSmart Server, powered by Windows Home Server.
Windows Home Server was created to help consumers deal with the explosion in digital content. For example, 273 billion digital images were captured worldwide in 2006.1 Today, more than 40 million homes in the U.S. have more than one PC2 and one in three homes in the U.S. has an MP3 player.3 Windows Home Server automatically backs up home PCs and provides a central location for storing a family's photographs, music, videos and documents. Using a personalized Windows Live Internet address, people will be able to remotely access digital content on Windows Home Server when they are away from home. At CES, companies such as AMD, Inventec Corp. and Quanta Computer Inc. will demonstrate hardware reference designs for Windows Home Server. Windows Home Server will also serve as a platform for independent software vendors to build innovative products for the digital home.
Gates also announced a partnership between Microsoft and Ford to deliver Sync, a voice-activated, intelligent means to connect personal electronic devices to vehicles, including a wide range of mobile phones, storage media, and portable music players such as Zune and others.
Sync, developed by Ford and based on the Microsoft Auto platform, will offer hands-free phone dialing, address-book synchronization, and other features such as the ability to read text messages through the car's audio system. Drivers can also control their digital music players using voice commands or controls on the steering wheel. In addition, the Microsoft Auto software is easily updatable, so Sync can integrate new devices as they are introduced, with a simple software upgrade.
With Sync, Ford is using Microsoft Auto to give drivers greater control by unifying their mobile phones and portable media players into a single voice-operated in-car system. Sync is planned to be available in the second half of 2007 in 12 models of 2008 Ford, Lincoln and Mercury cars and trucks and will expand to all Ford, Lincoln and Mercury cars and trucks by the 2009 model year.
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