[mikeryan]

Here's the problem.

There's nothing in it for the Cable companies outside of getting rid of the cable box - which is at the cost of giving up control of the software ecosystem.

Second point if this type of deal was possible, Microsoft would have already done it. Microsoft has 30 Million Xboxes in peoples homes already, they've been working closely with cable companies on this initiative trying to make them happy. The Xfinity Xbox app has streaming already, but its not replacing your cable box anytime soon.

Also, side note, if this did happen (which it won't) a DVR solution would just be a cloud based DVR. The cable operators are doing this already.

[mynameisvlad]

To be fair, Microsoft is doing it with UVerse in the US and Optik in Canada. Because they use Mediaroom IPTV, you can use your Xbox as a full blown receiver.

[mikeryan]

Good point and absolutely true my comment is pretty specific to the US terrestrial Cable Markets.