Microsoft has a long history of working to bring the TV to the computer. With tight integration into its Media Center platform, Microsoft knows that there is value in merging the home PC and live TV, which makes it seem a little odd that they have been sitting on the back burner while Google TV has generated interest among consumers.
According to Reuters, that may be all about to change. They are stating that Microsoft has held talks with the media giants about delivering a paid service that may be distributed via the Xbox 360. Microsoft is looking to fight back against Google, Apple, and many other companies who are looking to merge the TV, Internet, and movie industry into one platform that plays nicely on your TV.
Other than leaks about Microsoft holding meetings with top executives from all the major media players, not much else is known at this point. It wouldn"t be a huge surprise if Microsoft creates its own device to directly compete, but at this time, it"s all pure speculation.
One other interesting fact about the web-to-TV market is that Sony has recently slashed the prices on some of its Google TV gear that may indicate that consumer adoption is lackluster at best.