Citing sources close to the matter, Reuters reports that Microsoft is mulling several options, including a new "virtual cable operator," which will offer a range of channels for a monthly fee. The company is also apparently in talks with cable providers themselves to turn the Xbox into a cable box of sorts to allow for "enhanced interactivity" with programming.
Unfortunately, Xbox 360 owners eager to cut the cord with their cable TV providers will have to wait a while, as Reuters' sources say that any such service is at least 12 months away. Currently, television shows from a variety of networks, including NBC and Comedy Central, can be bought individually on Xbox Live's video marketplace. The box can also be used as a second receiver for AT&T's U-verse cable TV service, provided there is already one U-verse DVR in the home.