Xbox 360's IPTV in action

Earlier we reported that IPTV is coming to the Xbox 360 this year. This video shows how it will work and what the interface consists of. The interface is similar to that of a digital cable box or a TiVo, but this looks faster and very sleek. It provides a live picture-in-picture preview of channels as you surf, so you can actually see what's on without changing. But there are still some answered questions about availability and pricing. Your local cable service provider has to provide the IPTV service and it will probably be at an additional cost.

I especially like the prospect of being able to seeing what my Xbox Live friends are watching and then "join in" by starting a chat. This new development puts the Xbox 360 in a position to rule your home entertainment center.

[IPTV video demonstration released @ Xboxic]