An interview over at Engadget said Microsoft are looking into many possibilities about the distribution of the IPTV/360 service. It is likely that IPTV providers will initially ship out 360s as set top boxes, but Microsoft didn’t rule out an Xbox Live update, or a CD which is distributed from the provider with the correct software to enable IPTV. They said the 360-side of IPTV is purely software, so there is no need to manufacture new hardware. One of the only differences you’ll probably find with set-top boxes from providers will be a branding of their service somewhere within the dashboard or on the console.

IPTV was said to work with a software update

I don’t think enough is known about any of this for anyone to say anything.

Also, I listen to that podcast weekly and heard that discussion the other day. I took what he was saying as something someone on here would saying after reading all the rumor sites.

Thanks for pointing out, I had actually already corrected the mistake before I saw your comment

Current 360 owners will be pissed if MS releases a v2 of 360, unless they offer a small price trade in program or something similar…

Paul Thurott is NOT a microsoft employee… He was an MVP (Most Valuable Professional - he may still be, even if he no longer actually does anything for it).

But he is often wrong on what he says on Microsoft products. He has people on the inside that talk to him, but he also pulls some stuff out of his .ss sometimes… Go look at the commments people leave on his blog.

I’d take EVERYTHING he says with a BIG bag of salt…

Just saying

The hard drive size is a practical issue when recording, but it can’t have much impact on live viewing alone. Likewise, for DVR capabilities, an IPTV stream received over Ethernet isn’t going to be much different than a marketplace download, so there’s no new hardware required there. And as for playback, I’d simply point out that current devices can handle HD video just fine. Since this specific IPTC service is Microsoft-backed and defined, I doubt there’s much more than a VC-1 video stream involved.

I suspect that 360s may be bundled with service through some providers, but given the FCC’s record vis-a-vis CableCard, I doubt that consumers will be forced to buy a 360 with service. MS’s efforts with the IPTV providers are likely focused on ensuring that the 360 works with each service.

Paul Thurrott apparently DOES NOT work for Microsoft, he works for Windows IT PRO - a publication that is not a Microsoft entity.

The way he talks about Microsoft’s products obviously gives you the idea he is not under Microsoft’s employement either.

Since he is not under Microsofts employement I would really be suspecious about what inside information he may or may not have. He clearly says hes not 100% sure what IPTV requires or was prior to CES so again it’s very suspect if he is 100% in-the-know if a hardware revision is really needed for IPTV to work.

Obviously the IPTV providers will provide an XBOX 360 to their customers, it is not known when or if current 360 users will be able to bring their 360 to the provider for service.

Microsoft can then later provide an add-on harder (possibly?) for current Xbox 360 owners that accounts for any hardware modifications that were needed. Also service providers at this point may also allow you to bring your own 360 with a larger harddrive which will be available at that time as well.