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What I don't understand is why they think $60 games are tiny toy things someone might play but the real score and goal of company like Microsoft is to get people watching TV content through their hardware with no revenue to Microsoft.

Sure MSFT is still stupid about charging for XBox Live Gold to allow people to watch Netflix... but that can't last when Sony and Nintendo and Roku and SmartTV Apps and SmartPhones and PCs and SteamBoxes and everything else other than MSFT don't charge for such passthrough access.

...

So actually all that free service stuff is me2... while the games are the real value for any of the companies involved in that space.

If Apple gets in and has people buying content via their "store" they might get royalties... but the rest of it will be free. TV content isn't going to be making MSFT, Sony, Apple, or Nintendo any money.