Microsoft has acquired US home entertainment start-up R2 Studios for an undisclosed sum.
The technology giant has also obtained some patents related to controlling electronics as part of its deal with R2, which was originally reported by theWall Street Journal. It is thought that these will be used to bolster Microsoft's Xbox home console.
The company was also in talks with Google and Apple about a possible deal, sources familiar with the matter told the Wall Street Journal.
R2's founder Blake Krikorian and his small team will now be heading to Microsoft's Redmond campus.
Develop has the full story.