I have said it before, and will say it again; the next generation Xbox will be a multimedia focused device that will play games as opposed to a gaming device adapted to utilize multimedia functions. With that being said, Microsoft may have confirmed my theory with the announcement of the recently opened Xbox Entertainment Studio in Santa Monica.
With focus on producing Xbox Live exclusive content for their 46+ million Xbox Live users, the companies agenda has moved from a strictly "console" war to a more lucrative "living room war." According to executive Nancy Tellem, the newly acquired team of 150 is developing original, subscription worthy content in direct competition with companies such as Netflix and Hulu.
Such subscription service could also provide a more lucrative venture as well. With Microsoft having conditioned Xbox Live users into paying for their on-line service over the last decade, it may be easier to transition them into a "bundle" type finance program in regards to the next Xbox. Doing so would package the next Xbox, Xbox Live and the Xbox Entertainment programming all into one monthly package. Doing so not only creates a user base, but allows the hardware to be sold at a lower, more appealing cost to the consumer.
This is all just theory of course, but with Microsoft already offering financing options on the current Xbox 360, it only seems like the natural progression of things. Let me know your thoughts on this by subscribing to me here and following me on twitter @NicholasGigante.
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