Microsoft's Xbox Live service is about to replace the cable box and DVR as we know it. At least, that's what Microsoft is planning as Bloomberg reports that the company is currently in talks with Comcast and Version. If the expected business deals are made, Xbox Live would be able to access your Comcast Xfinity TV or Verizon FiOS service though your Xbox 360, much like Netflix can stream directly to the console.

Ever since Netflix teamed up with Microsoft, the service has been a major player in the video game market, with both Sony and Nintendo 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 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.

[Source: Bloomberg]

This article originally appeared on as Microsoft in Talks with Comcast, Adding TV Service to Xbox Live