Since Microsoft first announced vague plans to add live TV optionsto its Xbox Live service at E3 this year, industry watchers have been heralding the move as a potential death-blow for standalone cable boxes, and even for separate pay TV service itself.

Those cries have only increased with Microsoft’s announcement today of dozens of major partnerships with various media companies to bring video content to Microsoft’s online service.

Microsoft itself is selling it as “the best way for you to interact with TV, video, movies, sports and music” and “a WHOLE LOT more enjoyable and engaging” than current TV options.

As announced today, though, Microsoft’s Xbox Live TV plans seem like a squandered opportunity to extend the company’s strong position in online gaming into a foothold in the burgeoning IPTV market.

(full article)