Microsoft Corp. has announced a project with a Showtime Networks joint venture to build a gaming download service in what could compete with its IPTV unit’s efforts to advance Xbox 360 as a potential entertainment hub in the home.
The vendor’s service provider and IPTV units are selling different products, with the former offering its Connected Services Framework (CSF), while the other is promoting Xbox 360 with IPTV software built in, which is slated for availability later this year.
Microsoft announced that it is working with On Broadband Networks to build a game service platform for broadband providers. On Broadband Networks is a joint venture between Showtime and game publisher Broadband Libraries.
Given the high stakes of gaming offerings, which service providers such as Verizon Communications Inc. and Optical Entertainment Network Inc. (OEN) are already cashing in on, this may simply be a parallel effort aimed at this lucrative area, which already has gamers demanding more and more Internet bandwidth.
But one longtime industry expert, familiar with the work of both Microsoft business units, said they have critical work to do if the goal is to show some clear level of integration between the groups’ products and services.
“Their most conspicuous weakness is poor integration between IPTV, which is obviously a provider product, and their Connected Services Framework which is likewise for providers,” said Tom Nolle, founder and president of CIMI Corp. “There’s also poor integration between IPTV and CSF and their home media products (including Xbox), as well as their enterprise collaboration products. This is one they are slowly working on fixing, apparently.”
Nolle added that he sees no indication in the press materials that their gaming network project or its new Interactive Media Manager is integrated with CSF, which he claims Microsoft doesn’t do an optimal job of promoting.
The Interactive Media Manager is a content management system that “combines digital workflows and media application integration with a collaborative front-end environment.” It’s designed for the media and entertainment industry, including film and post-production studios, broadcasters, game developers, publishers and advertising and marketing agencies.
“While this is an NAB show and not one for telecom, it’s still surprising to me that they don’t promote CSF strongly, and I think their lack of strategic focus on CSF is the heart of their problem with media strategy,” said Nolle.
Neither of the announcements made by Microsoft’s service provider unit “have a direct CSF component,” according to a spokesperson for the business unit, who did not elaborate.
Ed Graczyk, director of marketing and communications for Microsoft TV noted that the service provider unit sells all the company’s products to service providers, while it focuses on products that enable and enhance IPTV services.
Microsoft said it’s providing software solutions and consulting services to help On Broadband Networks develop and deliver a broadband games platform for high-speed access operators and their customers.
On Broadband Networks’ private-label game service will target cable and DSL broadband providers. The Microsoft unit said “this is a great example of how the convergence of the media and entertainment world with the cable and telecommunications world is creating new business models and distribution channels.”
Microsoft Corp. www.microsoft.com
