Microsoft snaps up ESPN to offer sports content on Xbox 360

Microsoft Corp. has given sports lovers who also own Xbox 360 gaming console a reason to rejoice by including different sports-related programming in the Xbox Live Marketplace, the leading high-definition video download service.

Software giant Microsoft announced on Monday that it has signed an agreement with Walt Disney Co.’s Bristol, Conn.-based sports division ESPN, under which the former company will be able to add both high and standard-definition full-length games, television shows and video game programming to Xbox LIVE network on Xbox 360.

Effective immediately, the move will enable Xbox Live (XBL) subscribers to download college football and basketball games, shows and documentaries, the two companies said in a joint statement.

The XBL users can download content from a growing catalogue of sporting events and timely programming, including full-length NCAA college football and basketball games, segments from the Summer X Games 13, the “World Series of Poker”, as well as boxing reality show “The Contender” and episodes from the 2006 and 2007 season of “Madden Nation”, a reality show based on EA's Madden NFL sports game.

Some ESPN sports documentaries like “Down the Barrel” and college football bowl games are also slated for Xbox Live Marketplace, the one-stop shop on Xbox LIVE.

“This is a natural fit for us, as so many Xbox 360 owners are huge sports fans,” said Ross Honey, senior director of the media and entertainment group at Microsoft. “We are dedicated to providing our diverse community of Xbox LIVE users the premium entertainment content they want, and partnering with ESPN is a great example of our continued dedication in the video-on-demand space, especially in high definition.”

“Establishing this relationship with Microsoft on Xbox 360 provides an innovative way to reach our target demographic through this dynamic next-generation entertainment console,” said Matt Murphy, senior vice president, Digital Video Distribution, Disney and ESPN Media Networks. “This agreement embodies our mission to deliver the best sports content to fans, and does it through an exciting and robust platform that reaches millions of people.”

Xbox 360 gaming console owners can purchase the programs available in both standard and high-definition formats via XBLM. Commercial-free NCAA games, which will only be available 48 hours after the game ends, will go for $3 in standard-definition and $4.50 in high definition. The other ESPN TV shows can be purchased at $2 each for standard-def and $2.40 for high-def programming.

Microsoft's Xbox Live connects millions of members across 25 countries to enjoy hundreds of multiplayer games, downloadable games via Xbox LIVE Arcade, free and premium playable game demos, music videos, TV shows and movies in the United States as well as new game levels, characters and vehicles for all their favorite retail games.

This innovative and most comprehensive unified online entertainment network currently offers more than 3,200 hours of entertainment content from more than 30 studios and networks. It is the only online service that offers downloadable movies and TV shows in high definition.

The two companies have not yet disclosed the financial terms of the deal.

Shares of Disney dipped 5 cents to $33.87, while Microsoft shares slipped 27 cents to $36.79 in New York Stock Exchange composite trading.