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Microsoft considering licensing Xbox to other companies

Xbox 360

Looks like Microsoft's still a software company at heart after all. Despite the success of the Xbox and its aggressive pre-launch campaign for the upcoming Xbox 360, the company has begun hinting that it might license the Xbox's basic software to other companies, which could incorporate Xbox functionality in devices such as cable boxes and TVs. The move could bolster the Xbox in its battle against Sony's Playstation, and could establish it as a Windows-like platform, rather than a hardware console. It could also get Microsoft out of the low-margin hardware business, letting it focus on the more lucrative software market.