Skip to main content

Microsoft’s Xbox strikes back at Nintendo TVii with R2 acquisition

Image used with permission by copyright holder

Microsoft continues to expand its home entertainment empire. The Xbox 360 is already positioning itself as the set top box of the future, growing its base of video and television apps at an increasing rate—Xbox Live saw 40 new entertainment apps released in December alone. Even though Windows 8 hasn’t yet connected with audiences, it’s positioned to link the world of Xbox console and PC for an all-encompassing home entertainment business. The Xbox 720 may be more than just a hub for entertainment in the home, though. Based on Microsoft’s latest corporate acquisition, it could be an interface for all home appliances.

The Wall Street Journal (via Venture Beat) reported on Thursday that Microsoft acquired the startup id8 Group R2 Studios for an undisclosed amount. The purchase ended a small scale bidding war for the company between Apple, Google, and Microsoft.

Those tech giants wanted R2 for its home automation technologies, as well as the patents related to them. Blake Krikorian, founder of streaming media tech company Slingbox, opened R2 Studios for business in 2012 moving into the realm of smartphone and tablet apps that control various appliances. R2 released just one app as an independent company, R2 Control for Creston, which turns handheld devices into remote controls for any Creston automation system. (Creston creates systems for controlling lighting, heat, etc. in homes and businesses.)

According to the Wall Street Journal, Microsoft wants R2 first and foremost for the Xbox brand, likely to enhance the nascent Xbox Smartglass. More people would probably use Xbox Smartglass if it could control their home entertainment set up and even the lights in their living room rather than just showing them an IMDB page for movies rented from Xbox Video.

Microsoft’s interest in R2 and its patents is only logical. The video game console business has already started to push beyond content. Nintendo’s new Wii U console is a prime example. The GamePad’s most innovative feature is arguably its dual service as both game controller and television remote. The combination of television control, the fledgling Nintendo TVii service unifying both streaming and live television access, and game remote gives the Wii U great prominence in a family living room. With Microsoft’s grand designs on competing (or partnering with) cable companies, R2’s tech will likely be a key component of the next Xbox. 

Editors' Recommendations

Anthony John Agnello
Former Digital Trends Contributor
Anthony John Agnello is a writer living in New York. He works as the Community Manager of Joystiq.com and his writing has…
Microsoft pledges to bring Xbox PC games to Nvidia GeForce Now
geforce-now-og-no-text-1200x630

Microsoft has announced a 10-year partnership with Nvidia aimed at bringing Xbox PC games to its cloud gaming service competitor Nvidia GeForce Now as part of its ongoing efforts to win over companies skeptical of its potebtial Activision Blizzard acquisition.
This means that players can use Nvidia GeForce Now to play the Steam, Epic Games Store, or Windows versions of titles like Halo Infinite, Redfall, and eventually, Call of Duty through the cloud on GeForce Now. Third-party publishers with games on the Windows Store can also now grant streaming rights to Nvidia. This announcement came during a European Commission hearing where Microsoft tried to convince regulators that its impending acquisition should bne allowed.
Microsoft has been under a lot of regulatory scrutiny even since it announced its intent to acquire Activision Blizzard in January 2022. It's trying to win over industry peers with deals like this one with Nvidia. This week, the Communications Workers of America voiced its approval of the deal, and Microsoft has signed a binding agreement to bring Call of Duty to Nintendo platforms as well. Previously, Nvidia had raised concerns about Microsoft's Activision Blizzard acquisition, but the press release announcing this agreement states that the deal "resolves Nvidia's concerns," and that Nvidia now gives "full support for regulatory approval of the acquisition." 
Regulatory bodies in the U.S., U.K., and Europe are worried that Microsoft acquiring Activision Blizzard will hurt the game industry and sabotage Microsoft's competitors in both console and cloud gaming. Nvidia GeForce Now is seen as one of the biggest competitors to Xbox Game Pass Ultimate's cloud service offerings, which makes it surprising that it reached an agreement with Nvidia. However, this deal also demonstrates how Microsoft is willing to make concessions so that its acquisition of Activision Blizzard is approved.

Read more
The best Xbox exclusives of 2022: 6 Game Pass greats that saved Microsoft’s quiet year
Characters from Grounded stand in front of text that says 2022 Best Xbox Exclusives.

The Xbox Series X and Xbox Series S's second year on the market was rough. While the consoles continue to sell well and Xbox Game Pass is still a great deal, the delay of Redfall and Starfield into 2023 decimated the Xbox consoles' first-party 2022 lineup. While the lack of heavy-hitting AAA titles might initially make a list like this seem frivolous, Xbox Series X and Xbox Series S still had quite a few compelling exclusives.

Many of these games are highly experimental, pushing the boundaries of narratives in video games. All of the titles launched on Xbox Game Pass on day one, highlighting the strength of that subscription service. If you have an Xbox Game Pass subscription or are just wondering what 2022 Xbox exclusives are worth playing, these seven console exclusives stand out.
Immortality

Read more
Microsoft’s price hike on Xbox games will apply to PC, Steam
Redfall Cover

Microsoft confirmed to Digital Trends that the impending price increase on its first-party games will apply to its PC releases as well. The change will happen in 2023 and affect upcoming titles like Starfield, Redfall, and Forza Motorsport.

This morning, IGN reported that Microsoft will be raising the prices of Xbox Series X|S games from $60 to $70. Digital Trends asked Microsoft if this would also apply to the PC versions of its games. A Microsoft spokesperson said, "Yes, starting in 2023, our new, full-priced games will be $69.99 across console and PC storefronts. This price reflects the content, scale, and complexity of these titles, regardless of platform. These games will also be available on day one with Game Pass.”

Read more