Ever since Netflix teamed up with Microsoft, the service has been a major player in the video game market, with both and scrambling to incorporate the streaming TV show and movie service into their own gaming systems. However, this new deal would Microsoft another critical leg up on the competition. Along with the ability to watch TV on your Xbox Live through your pre-paid cable subscription, the Xbox 360 would have access to plenty of other content:

Microsoft also expects to sign deals with Time Warner Inc?. (TWX)'s HBO cable channel, Sony Pictures Entertainment's Crackle streaming service, NBC Universal's Bravo and Syfy channels and Lovefilm UK, a subsidiary of Amazon.com Inc. (AMZN), [people with knowledge of the situation] said.

While Comcast and Version normally may be expected to support their own business, the reality is that more and more people watch TV online -- so having their services on a video game console may be the best way to cut their losses.

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This article originally appeared on GamePro.com as