Oh! I'm sorry. TV, TV, TV, TV, and TV.

EDIT: Is it so off-topic to talk about the subject matter catagorized in this thread?

And this is why I think deep down, this is just a beginning step.  I think the ultimate goal for Microsoft is an IPTV service. 

Its not but your first statement contradicts this entire topic.

Microsoft isn't looking to prolong the old guard and linear cable aspects of TV but seamlessly combine the "cable cutter" ways with cable and present it to the masses in a manner that even the father will understand and enjoy.

IPTV is just one side of the coin. Its funny, Misteshine commented about watching linear TV at a later time and now youre referencing IP TV. Together they paint the full picture...

Its all just content, doesn't matter where it comes from. IP TV, cable, over the air, video apps...users don't care. The challenge is combining technology and presenting all these forms of content to user in a manner that they can consume what they want and not worry where its coming from. If Microsoft figure this out with the Xbox, Windows won't be their main product anymore.  

Yes, but this is what everyone is doing. You have Apple, Google, Sony and Intel on top of many others. And Apple and Sony have far stronger ties to the industry so odds are they will be the first to crack it.

Even Nintendo tried with TVii, but it hasn't really made any waves.

For starters lets clarify what "everyone" is doing.  

The companies you listed are mostly attempting to bring their versions of IP based set top boxes, some of which combine some cable content aspects. IPTV is only part of the story and really isn't what is being discussed here.

None of the companies you listed have devices or technology that is able to combine all types of content(linear, digital, IP, PVR...) in to a seamless experience that is taylored to individual viewers and their viewing habbits. Its really not something that Apple, Sony and Intel can do very well because they do not have the means to search the internet an collect and target user data in a manner Microsoft and Google can (google and google ID,  bing and Microsoft account). How is apple going to scan the internet and find the video I want to watch and seamlessly start playing? They can't... They require users to launch apps, and search tmenselves on different apps and buckets of content.

The main roadblock in development of Television is that companies that own content want it to be consumed in the means that benefits them the most and can't find common ground. Comcast wants you to pay them 60 bucks and get their set top box, Youtube wants you to create an account and comment on videos, netflix wants you to pay monthly fee as well and connect with their app.

Xbox One is striving to be this common ground. Combine cable, combine digital subscription, combine IPTV...watch anything...but not worry about who owns it, where its coming from, which app has it, and what channel its on.

I understand. 

I just believe the long-game plan is an IPTV service.  It can do all those things the article talks about if it's also the IPTV service.  The problem right now is broadband providers cap services, and Microsoft doesn't have the relationship with content partners that it needs to establish a service.

MediaRoom was a lucrative side business for Microsoft.  They had at least 23% of the market, and it was expected to grow.  So why give that up, out of the blue?  Most likely because if Microsoft kept MediaRoom it would have an unfair advantage in positioning its own service in the future.  Critics would be able to say that any features it developed were developed in partnership with the very cable providers it was working behind the scenes to undermine.  Where as, with MediaRoom gone, there isn't any fear of impropriety.   Everything Ericcson does with MediaRoom and the collaborative efforts with cable/satellite providers won't benefit Microsoft. 

Had Microsoft still owned Mediaroom, than it could have easily developed features cable/satellite providers were wanting or needing, patenting those features it created, and improving them for its own benefit (i.e. its own service).  With that relationship now gone, Microsoft has no input on what features the cable/satellite box has, it just has to work with the features that do exist.

I don't think Microsoft has aims to start an IPTV service next year, but I do believe that is where the company is headed.  It can be the IPTV service provider, yet still allow the content owners to be the content owners and distributors (i.e. they have full control of their content and the advertising that goes with it). 

I'm not sure why you think the rest aren't trying to be this common ground. Google has Google TV. Sony has the PS3, as well as smart tvs. Both of these companies have already combined everything. Apple is also heavily rumoured to be producing something along these lines, and is probably best positioned as it has the strongest ties and content because of iTunes.

The only difference between what everyone is offering is how seamless the experience is. And that takes a long time and a lot of deals. Google TV tried to do exactly what Microsoft is trying now and they still haven't got everybody on board 3 years later, so their unified search is still patchy and missing providers. Why will Microsoft manage to do this instantly? They have started latest, have the fewest ties and the least experience.

Wii u already does that, and the xperia z tablet. Theres really nothing new about this.

Alright dude, just stop. You're making assumtions of things you know nothing about. The other guys already have this, ms isn't doing anything new.