Xbox One to enter set-top box deal with Sky - report

Microsoft is said to be entering a deal with broadcaster Sky to offer Xbox One consoles along with TV package subscriptions. Sources have claimed that Xbox One could serve as a set-top box for Sky television, or as a companion device.

MCV reports that sources close to the matter have stated that if accurate, the deal between Microsoft and Sky could see Xbox One consoles offered to subscribers at a lower price threshold.

The site adds that the deal may already have been signed and that Microsoft may announce it during its pre-E3 showcase this coming Monday. When it asked Microsoft for insight into the rumour, the company declined to comment.

This rumour certainly stacks up with what we've been hearing regarding Microsoft's desire to capture a slice of the IPTV market. During the Xbox One reveal event there was a lot of talk surrounding the rig's TV functions, and a Halo series was announced by Steven Spielberg.

Yesterday we heard from a company making Xbox Live programming that Microsoft is hungry for TV functionality and content.

What do you make of the above? Could Xbox One happily co-exists as a Sky and gaming box in one? Let us know below.