It seems that the Xbox 360 is going to be redefined again – this time with live streaming content from ESPN. According to an NY Times report, Microsoft and Disney held talks to bring live ESPN content to the popular gaming console for a small subscription fee. This seems to be in a bid to tackle the competition with respect to the amount of media content available on the console.

Previously, the Xbox has been the only gaming console to allow users to watch streaming movies – using Netflix. However, the Sony PS3 and the Nintendo Wii soon caught up and now, all three feature different levels of non-gaming media content.

However, the main test for Xbox in introducing ESPN features will be the viewer response – and whether they will be willing to pay more money to view streaming sports. Some feel that this might be too much to ask. However, if the success of Xbox Live is anything to go by, ESPN services on the Xbox are sure to be a hit

Although Microsoft and Disney both refused to shed light on the NY Times story, according to an anonymous source, the ESPN deal was as yet not on the cards.

In March last year, Microsoft and Sky struck a deal in the UK enabling Sky to broadcast content on gaming consoles – even overseas. This generally gave the feeling that similar deals were in the offing for Microsoft in the US too. Keeping the success of previous (similar) ventures in mind, Microsoft and Disney would have to have real strong reasons to not formalize something like the ESPN deal.