Microsoft's plan to turn the Xbox 360 into a streaming video hub took an expected step forward with word that Comcast will pipe video on-demand to the console, and Verizon will take it further by delivering VoD and a subset of its live TV lineup. It's not for the cord-cutting crowd, as access will be limited to Xbox 360 users who are authenticated Comcast and Verizon pay-TV subs and subscribe to the $60-per-year Xbox Live Gold service. Verizon's initial Xbox 360 play will couple VoD with access to 26 live TV channels, including CNN, Nickelodeon, MTV and Comedy Central.

Both Comcast and Verizon's video integrations will let Xbox 360 users navigate content with the device's integrated, gesture-based Kinect system, and both operators will deliver content to the box over managed IP links. Microsoft said the next generation of its Xbox Live service, to be out by the 2011 holiday season, will work with almost 40 TV and entertainment channels and service providers.