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NYT: Microsoft in talks with ESPN to stream content on Xbox

The New York Times reports that Microsoft has "held in-depth discussions" with the Walt Disney Company to stream ESPN programming through Xbox Live. According to anonymous sources, ESPN would provide live streams (like it does with the titularly similar – though unrelated – ESPN360) to subscribers for a fee. There is also the possibility that Microsoft may "create some interactive games in association with ESPN" ... as compared to non-interactive games?

The idea described sounds similar to that of the sports-heavy – and UK -only – Sky Player. While North America doesn't currently have a TV streaming application, it does have Netflix. If the Times' sources are on the money, it seems like the ESPN offering would be a similar streaming app, not to mention the next step in an increasingly non-interactive battle for the living room.

[Via @GeoffKeighley]

This article was originally published on Joystiq.