The Xbox 360 could receive a paid-for online TV service next year, according to reports.
Microsoft is planning to introduce a virtual cable service that charges users a monthly fee to view a range of channels.
The individuals suggested that the TV service will allow users to watch programmes and interact with them through the Xbox 360. They also said more Xbox Live content areas will be dedicated to new TV channels, as well as current channels such as ESPN and Sky Sports.
It was hinted that the package may not arrive for another 12 months, but that “early discussions have been productive”.
The news comes following the announcement of Google TV, a software platform that will be built-in to some new TVs or viewed via a dedicated set-top box.
The people who spoke to Reuters said: “We think the more competition the better. We will price and package it in such a way that we still make the dual revenue stream.
“We could probably charge more for interactive advertising.”