As we reported back in September, AT&T have now struck a deal with Microsoft allowing its U-verse subscribers to watch cable on their Xbox 360 consoles. The games consoles will act as a receiver for U-verse streaming TV content.

AT&T, the US phone and internet provider revealed that they are the first video provider to offer viewers the live TV experience using their Xbox 360 system. The set-up will also allow U-verse customers to have chats and receive game invitations via Xbox Live whilst watching a show. Gamers can also switch between game and TV mode without having to fiddle with wires or switches.

It was also announced that subscribers will via interactive apps, be able tp use their console to organise and play back DVR shows, view program guides and have access to tv-on-demand.

The setup will mean forking out $99 for an Xbox kit and of course a subscription to the service. The service be the first live TV offering for Xbox 360 in the US when launched on 15th October. And Windows Phone 7 users will get the service in November.

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