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Microsoft Grabs The Remote From Apple With Xbox Upgrade

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Image via CrunchBase

Yesterday, Microsoft launched an all-new Xbox 360 experience including the first group of new custom applications from world leading TV and entertainment content providers on Xbox LIVE.

On Dec 6, 2011, after they download an update Xbox users will be able to command their TV with their voice. Speak the name of your favorite movie to the Xbox, and it will be played.

It is widely believed that Apple (AAPL) is working on using Siri, first introduced as a virtual voice controlled assistant on iPhone 4S, as a voice remote control for Apple TV.

Microsoft just beat Apple to the punch.

Says Microsoft:

“A new era in entertainment begins where all your entertainment is together in one place — your games, movies, TV shows, music and sports,” said Don Mattrick, president of the Interactive Entertainment Business at Microsoft. “With this update, Xbox 360 system owners will experience Kinect voice control integrated with Bing search, making your TV and entertainment experiences more social and personal than ever.”

Microsoft is building on its expansive catalog of movies, sports, television, and music available through Hulu Plus, Last.fm, Netflix (NFLX), Zune music and video, and ESPN, as well as on its existing lineup of great TV providers, such as AT&T U-verse® TV in the U.S., TELUS in Canada, BSkyB in the U.K., CANAL+ in France, Vodafone Portugal, VimpelCom in Russia, and FOXTEL in Australia.

Microsoft has two additional weapons in Kinect and Bing that Apple lacks. Xbox will allow users to flip through video content using gestures.  Microsoft combines Kinect with Bing search to transform your voice into a futuristic remote control.

Consumers may also be able to use their Windows phones as remote controls. If it will help sell more Windows phones has yet to be seen.

Microsoft has taken a giant step forward to bring the world closer to the futuristic way of watching TV. The first reviews are positive; however after Google’s (GOOG) high profile failure in its Google TV endeavor, caution is warranted before celebrating Microsoft.

Even if this new effort from Microsoft is a mediocre success, it will accelerate the trend towards cable TV cord-cutting. Until now mostly young people have been cancelling their cable TV service in favor of watching TV online. Microsoft has just brought the eventual death of the cable box closer. Xbox makes it easier than ever to watch all your shows online.

How will Apple and Google respond? Right now we can only speculate. It is early in the Cyber World War.

The next article in this series will address challenges facing Google in its battle with Amazon.

About Me: I am an engineer and nuclear physicist by background, have founded two Inc. 500 companies and have been involved in over 50 entrepreneurial ventures.

Full disclosure: I am long Apple from an average of $131.  I took profits on 50% of the position at an average price of $360.  Subscribers to ZYX Buy Change Alert may have a similar position and may have taken similar actions.  I am editor of three more newsletters at The Arora Report.