IPTV for Xbox 360 by end of year

Microsoft has revealed an IPTV service for the Xbox 360, with plans to launch the on-demand service by the end of this year.

The new service will allow 360 owners to use their console as a digital recorder, with crossover features such as the ability to record while playing Xbox 360 games, and chatting to users on a friends list while viewing TV channels.

Revealing the international deals already in place, AT&T, British Telecom, Deutsch Telecom and Swiss Telecom have already signed up as partners, with another 11 companies trialling the service.

"This is going to be the next-generation of channel surfing," said Microsoft while demoing the service as part of Bill Gates's keynote address at CES in Las Vegas.

The IPTV service is the latest initiative by Microsoft to establish the Xbox 360 as not just a games console, but an entertainment device.

Last year, it launched a digital download service, with consumers able to download movies and TV shows directly to the hard drive. It is expected Microsoft will reveal details of a new hard drive, much larger than the 20GB model already available, in the coming weeks.