Microsoft used the Consumer Electronics Show (CES) in Las Vegas to show a preview of IPTV on Xbox 360, a development that combines Xbox 360 with Microsoft TV IPTV Edition.
The offering will eventually deliver world-class TV experiences such as digital video recording capabilities with gaming, movie viewing and even voice and viedo communications.
For example, users will be able to watch a sporting event live while simultaneously chatting; or participate in an Xbox match while recording a TV programme in the background.
IPTV on Xbox 360 is expected to be available to consumers by Christmas this year and will be offered by providers who are deploying TV services based on the Microsoft TV IPTV Edition software platform.
Microsoft also used CES to introduce Windows Home Server, which allows families with multiple PCs to conect their home computers, digital devices and printers.
This will allow families to 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 the Windows Home Server.