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thranx said:

thats one way. but i dont see them doing it that way. I currently have verizon fios and they have a partnership with xbox and you can access some cable channels already, and they are live channels just like on TV not on demand. I dont currently have to hook up a cable box to do this. just the xbox 360 download the app and put in your subscription info. So although the rumurs have said you would need both i think its more likely they replace your cable box with the next box.

Thing is, they would have to partner with several cable companies, maybe most of them, in order to make it a viable solution for replacing your cable box. Otherwise, they are leaving out a large portion of the country (without even getting into an "always online" discussion). I don't have Verizon FiOS, Comcast, or HBO, and my ISP doesn't support ESPN3, so I can't use any of those media apps.

If rumors are to be believed, it has an "HDMI IN" which would allow the Xbox to be used as a pass-through for the cable box which would allow you to use the tv tuner function. But agian, if you don't have a cable box, that feature is useless and if your provider hasn't partnered with MS, you just might be out of luck for live TV