Over 13 years ago, Microsoft bought a little startup called WebTV, a set-top box that brought the internet browser to TV. While that effort flopped, many on the WebTV team helped create Xbox, which is quickly becoming the dominate device in living room’s across America.
Last month, Xbox 360 sales jumped 68 percent — 1.37 million consoles — on the strength of Kinect, which is selling like hotcakes. Xbox has been the top-selling console now for 6 months running.
But many people (like myself) don’t just use Xbox for gaming, but as an on-demand TV portal. Paid Xbox Live subscribers — there are 12 million in all — can watch Netflix and ESPN3, and Hulu Plus is coming in early 2011. And Microsoft says these users spend an average of 3 hours a day on Xbox with 40% of their time NOT playing games. Wow.
This community is television’s largest social network, and Xbox understands its value. “(Hulu Plus) will not be a port, but rather a custom experience that leverages the Xbox Live community features,” says Xbox’s Major Nelson. In other words, with social features tied to TV shows. And the addition of Kinect may bring “remote-less” viewing in the near future, as well.
Xbox 360′s success is in stark contrast to Google TV, which is struggling with sales after the networks blocked its browser from watching TV shows. Other set-tops like Roku, Apple TV, Boxee, TiVo, etc., don’t even come close to Xbox’s reach or rate of sales. Who would have thought that WebTV would help reinvent TV, not as a browser, but through a gaming console?
(Big disclosure: I work for msnbc.com, which is half-owned by Microsoft)
