Xbox 360 Elite with IPTV could change the world

Nipping at the heels of our "Orb" story below, Gizmodo is reporting that the rumored and unconfirmed and who-cares-'cause-we-all-know-it's-coming Xbox 360 Elite will be IPTV ready out of the box.

This may be a problem for Sony and, to a lesser degree, Nintendo as Gizmodo concludes, "VOD? (video on demand) IPTV? DVR? Media streaming? The 360 is looking more and more like the best convergence box of its generation."

But, could the Xbox 360 Elite really change the world? Make no mistake, Sony and Microsoft are both vying to get consumers to leave the old concept of gaming consoles being just for games behind so they can transition to the elusive and highly coveted "Universal Set Top Box" - an all-in-one media delivery tool that allows consumers to receive every type of conceivable digital content through one easy-to-use interface right into their living rooms.

What's at stake? The first company to deliver this concept to the public in a way that successfully drives widespread consumer adoption is going to have a huge leg up in the Digital Distribution Industry (DDI) moving forward in this century. Century? Yes, this is not some short-term concept we're discussing, this is a serious "Next Big Thing" kinda thing. DDI will be looked back on as being as revolutionary as Radio and TV were when they were introduced. Do you know anyone who doesn't own a TV or a radio?

We're not talking about millions or even billions of dollars in possible revenue here, this could be worth trillions over the next several decades and could fundamentally change the very landscape of entertainment. Imagine no more music stores, no more theaters, no more movies or TV shows on discs. Once enough money is being diverted away from these brick and mortar endeavors and into the DDI, they may all become obsolete and extinct. I predict the change is coming sooner rather than later.

Of course, people may continue to support theaters and the like due to the social aspects of seeing a movie in a large group or they may not. If you and I and all our friends could watch the same movie from our individual living rooms while all being connected together with live voice chat (with the ability to mute the "movie-talker" or "annoying laugh guy")...wouldn't that actually be superior to a theater? We could laugh together at the right times and still be able to eat our own snacks, drink our own drinks and sit in our own recliners. I have to say, that sounds pretty compelling to me!

As with everything else, the market will decide.