That doesn't make the slightest bit of sense (meaning it's probably the issue, since very little the MPAA/TV studios do make sense in this arena). Giving the XBox the same functionality a Tivo has - which is entirely legal - or a box the cable company sells - which is still legal - shouldn't have any impact on rights. I'm talking about strictly live TV, not Hulu/etc. Why would the studios care? Even if they did care, what could they do about it? Deprive themselves of more revenue? Yeah, that's a good idea.
My guess is that Microsoft doesn't want to have to pay Tivo/whomever for rights to the patents necessary, and they don't want to have to include a big enough drive. It's possible there is a problem caused by the XBox being a media extender (some ability to expose the video files to the PC), but I don't think that's likely. Even if that were true they could segregate the storage, since they control the OS.
My guess is that Microsoft doesn't want to have to pay Tivo/whomever for rights to the patents necessary, and they don't want to have to include a big enough drive. It's possible there is a problem caused by the XBox being a media extender (some ability to expose the video files to the PC), but I don't think that's likely. Even if that were true they could segregate the storage, since they control the OS.
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