Microsoft's new "Xbox Entertainment Studios" in Los Angeles is making a variety of "entertainment" different from what you might expect Microsoft to produce for Xbox: television programming. "Interactive" TV, but TV nonetheless.
The studio is spearheaded by president of entertainment and digital media Nancy Tellem, who also oversees live events on Xbox – like the Elections 2012 hub and similar "interactive" presentations for the Grammys and the (upcoming) Oscars. XES will work to create original interactive content for Xbox (and other devices).
While the new studio creates programming, Microsoft also plans to add more channels of other companies' programming, to the tune of 40 new TV and entertainment apps this year.