Microsoft is said to work on connected TVs to block Google and Apple TV services. Microsoft can build a compelling service by using its Xbox know-how. Microsoft knows what kind of experience consumers are expecting from a TV which isn’t the case of Apple and Google.
Some are expecting Microsoft to offer some premium channels, so I don’t think it will be the case. I think Microsoft will launch an OS and a whole ecosystem for the TV. An ecosystem that will enable TV set manufacturers and cable/DSL operators to have both a piece of the cake, and surely a bigger piece for Microsoft.
In the long run, Set-Top-Boxes will disapear as the TV will get connected. What the industry is missing is a common standard to be able to plug cable operators services and channels directly on the TV set. These services will exist along with the manufacturer’s ones.
Microsoft has been very good at building standard in the past, I believe they are giving the last touch to a new ‘ TV secret weapon’. To be announced at the next CES?