Microsoft sells Mediaroom, will place 100% focus on Xbox cloud TV strategy

Monday, 8th April 2013 15:12 GMT By Dave Cook

Microsoft has laid bare its plans to make Xbox the “Premium entertainment service that delivers all the games and entertainment consumers want”, by investing 100% of its focus in the console’s TV cloud TV strategy. The company has sold its Mediaroom brand to Ericsson to give it space to fully concentrate on its new mission.

Microsoft announced the Mediaroom sale on its blog today, confirming that Ericsson had bought the IPTV service for an undisclosed sum.

Yusuf Mehdi, Corporate vice president of marketing, strategy and business for the Interactive Entertainment Business at Microsoft penned the blog, underlining Microsoft’s desire to make Xbox consoles the one-stop entertainment hub for the home.

“This acquisition is mutually beneficial and strategically aligned for both parties. Ericsson will continue to invest in the growth and success of Mediaroom to the benefit of customers, employees, and the industry. It allows Microsoft to commit 100 percent of its focus on consumer TV strategy with Xbox.

“We are proud of the world-class engineering and business achievements within Mediaroom. 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.

“It is not a mission that we can achieve alone. We want to partner with the industry to deliver the next wave of innovation in games and consumer entertainment. We will partner with content creators, studios, labels, networks, content aggregators, operators and distributors to make this happen. We believe the future of home entertainment is one where TV becomes more simple, tailored and intelligent. We believe the best is yet to come for this industry.

“Our vision and energy for the future of entertainment is more focused than ever. Stay tuned.”

We’re expecting Microsoft to unveil its new console in late May.

What do you make of the above? Is Microsoft’s focus on entertainment impeaching on its game strategy? Are you at all interested in what TV functions the next Xbox will have? Let us know below.

Thanks GAF.



  1. OlderGamer

    “And with 76 million Xbox 360 consoles around the world”

    Right, because you know RRoD never happened and people have never for whatever reason purchase a second system. No sir, each and every one of those systems sold is still working flawlessly and represents a unique and individual consumer.

    #1 2 years ago
  2. TheBlackHole


    Replacement Xbox’s are NOT factored in to official Microsoft sales figures.

    And while some people would have bought a second console, that would have been after a three year warranty had passed.

    #2 2 years ago
  3. OlderGamer

    I and a lot of people I know bought replacement consoles out of pocket. When I recieved my refurbed replacement, I stuck it in the bedroom and opened a second account for my wife, so we could watch netflix.

    #3 2 years ago
  4. DSB

    @3 76 million isn’t even that much if you compare it to how much the PS2 sold in a much shorter timespan.

    But publishers are also pushing more merchandise on the 360, and to me that wouldn’t make sense if the numbers were somehow inflated.

    If so, then it’s safe to say that those owners are buying considerably more games than anyone else.

    #4 2 years ago
  5. deathm00n

    @4 And don’t forget that the Xbox can be cracked to run pirate games quite easily. I don’t know anyone with an original xbox. The same was true for PS2. They should show how much of those console are actually active on Live

    #5 2 years ago

    Hey, I’ve bought 4 360′s!

    The first two stopped working, the third one is (still working) in the UK, and the fourth is here in Saudi with me.

    I’m not sure if MS really care whether the 360′s that they’ve sold are still working or not… They’re probably happier with the fact that they have the ability to sell so many units.

    Even if they sold 76 million to 55 million customers, it stills shows that their product is desirable enough to keep selling, and that people want it.

    #6 2 years ago
  7. DSB

    @5 But wouldn’t that cut you off from online? At least that’s what I heard.

    I had a chipped box for quite a few years, but I eventually replaced it because I didn’t want to get busted for going online.

    Hey, I guess that means I bought two, too!

    #7 2 years ago

    I think you can go online, but you can’t update anything.

    My neighbour has a chipped 360, and he can’t play any games released after a certain date.

    iirc, as soon as you try to update these 360′s officially, they brick.

    #8 2 years ago
  9. polygem

    well important is TO KEEP those gold sub members. i am not so sure if they are doing enough for that. in fact i think the opposite is true. i can only speak for myself but my gold just expired this month. no plan to upgrade anytime soon. why should i ms? to watch some ads? i can do that for free elsewhere. i feel ripped off by them and in my book that´s not a job well done if you want to sell subs.

    #9 2 years ago
  10. Dark

    i’m starting to doubt if xbox will even be consider a console.

    #10 2 years ago
  11. Gadzooks!


    Qualify that moronic piece of drivel. What defines a console?

    #11 2 years ago
  12. Phoenixblight


    MS focus won’t be games thats for sure. THey are going after being a media service like AppleTV.

    #12 2 years ago
  13. ps3fanboy

    as i see it microsoft is outta the game, they don’t know jack shit what they are doing.

    if your are a gamer you have only one choice this gen and that is sonys playstation4. sony know what a gaming system are and what their customers want.

    #13 2 years ago
  14. viralshag

    If you are ONLY a gamer a PS4 might be the right choice. Unfortunately I don’t think there are many only-gaming customers left, or at least not many that want a console to excel in one thing…

    (I did edit that to make more sense.)

    #14 2 years ago
  15. DSB

    @14 Are you sure? Sony DVD/Blurays are shipping with Netflix, Amazon Instant video etc.

    I don’t think they’re blind to the fact that people would rather have a swiss army knife than a “dumb” tool.

    #15 2 years ago
  16. Wen3

    The next xbox will be super smart entertainment system that will be great if they deliver blockbuster 4k movies and games

    #16 2 years ago
  17. Wen3

    And I bet most gamers will go for the next Xbox and and the xbox itself will focus on simple games like fifa,car games,fps COD and others and small games …..Sony will get angry at this ….their goal is to bring new ways to play and bring more varied innovative games only to find out the competition is not even competing with them and still dominating them

    #17 2 years ago
  18. Wen3

    Along the road microsoft will want to buy the sony playstation brand or nintendo or both you will see…….

    #18 2 years ago
  19. Gadzooks!

    Anyone that thinks Sony isn’t after the exact same markets as MS are extremely naive.

    Sony in fact have the track record for pushing non-gaming features in their consoles:

    PS2 pushed DVDs.
    PS3 pushed BDs, pimped 3D TVs, led with YouTube, etc.

    Both machines will focus on games and services equally. They would be stupid not to.

    #19 2 years ago
  20. ps3fanboy

    I will be staying away from the Xbox this time too. Gonna buy the new PS4 for certain.

    I can’t see anything to get excited and to shout about on the new gen Xbox… Halo’s pretty much dry. Gears of War is also dry and most other interesting stuff is cross platform. Not only that integrated Kinnect and the subs… nah!.. I’m out MS.

    #20 2 years ago
  21. ps3fanboy

    A lot of things turned me away from the 360 like the Metro dash and ads, Kinect, the lack of exclusives and in-house develpoment, the pennies ‘reward’ they gave you for your loyalty,the inability to use apps unless you have a gold sub, and the fact the PS+ was such great value for money. Sony’s offering was so much better than the Microsoft xbox.

    #21 2 years ago
  22. ps3fanboy

    It seems like Microsoft have had their heads up their asses for a while… I wouldn’t buy anything “NETBOX”. Seems games come in the third place at Microsoft.

    #22 2 years ago

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