UPDATE: Microsoft moves to counter TiVo with movies on demand

Microsoft reiterates promise to provide movies on demand to Xbox users by Christmas as TiVo's New Zealand launch date nears.

By James Heffield | Wednesday, 23 September, 2009

With TiVo's New Zealand launch imminent, Microsoft has reiterated its promise to provide movies on demand to kiwi Xbox Live users “before Christmas”.
New Zealand Xbox 360 spokesperson Frazer Scott said the movies on demand feature would be "an incredibly powerful" entertainment tool that would allow people to watch1080p HD quality movies through their Xbox consoles.
"We are really excited by the new service. We want to make the Xbox 360 the entertainment hub of every lounge, and movies on demand will help cement that.
The Xbox movies on demand feature would be implemented as part of an annual Xbox interface update, he said. It would navigate differently to similar services provided by other movie on demand providers and would allow people to watch1080p HD quality movies with no discs and no delays.
Another source, who declined to be named, said more information regarding the features and launch date would be available next week.
“[Microsoft] are obviously gunning for a before Christmas launch with TiVo around the corner," she said.
TiVo distributor Hybrid Television Services announced at a press conference last week that TiVo would become available to New Zealanders from November.
Meanwhile, the price of an Xbox 360 Elite has dropped by $100. It now has a recommended retail price of $499. Gamers who purchase one of the consoles before October 22 would receive a free copy of Halo 3: ODST.