For Microsoft and Xbox, Focus Shifts From Game to Video – NYTimes.com

The content ambitions do not end there. Microsoft has held in-depth talks with the Walt Disney Company about a programming deal with ESPN, according to people close to the talks, who requested anonymity because the talks were intended to be private.

For a per-subscriber fee, ESPN could provide live streams of sporting events, similar to the ones available through ESPN 360, a service that is available from some high-speed Internet providers. Microsoft could also create some interactive games in association with ESPN, the people said. One of the people said the deal was not imminent. The companies declined to comment.

I’ve been saying for some time that the only reason I continue to pay Time Warner Cable anything at all is for live sports content (NFL, UK basketball and some baseball). If ESPN brought their ESPN 360 service to the XBox I’d be immediately calling to cancel to Time Warner but it would be another reason to eBay my PS3.