Operating system giant Microsoft have confirmed plans to release an updated online streaming service by the end of the year for games console Xbox 360, but have stressed that they are not in the market to compete, but only to enhance the services contracted with them.

The service, which is being called Xbox Live TV, was revealed by Microsoft CEO Steve Ballmer, during an announcement made whilst in a conference for developers (BUILD). He claimed that the company are working alongside ‘dozens or hundreds of additional video content suppliers’, in order to boost the reputation of existing Xbox Live partners such as Netflix, ESPN, and Hulu, amongst others.

Other developments to the service are thought to include a link-up with Microsoft’s ‘Bing’ search engine, and a potential integration of Xbox Kinect’s voice-recognition technology.

Ballmer said of this potential to innovate the way viewers can watch online content: “Having all of that content is right on, it’s fantastic, but it brings a new challenge with it. Certainly we all know the frustrations of using guides and menus and controllers, and we think a better way to do all of this is simply to bring Bing and voice to Xbox. You say it, Xbox finds it.”

With details of the release still sketchy, the most that fans can look forward to for the time being is a launch that is reported to occur ‘before Christmas’. While a demonstration of Xbox Live TV was supposed to take place at this summer’s E3 gaming convention in Los Angeles (USA) was cancelled, rumoured partner Diamond TV’s involvement has now been thrown into question.

Microsoft have announced that an Xbox Live dashboard update will be required for all online users of the console later in the year, although the involvement of their new viewing service is uncertain in this aspect as well. With Microsoft also making themselves busy with their upcoming Windows 8 PC operating system, will the company be able to compete in the online streaming platform market on their most high-profile (and in some cases traditional) systems?

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