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I was interested to read that Microsoft are working on a series of short films with the producer of Scary Movie as a pilot that will be distributed free to all Live subscribers

If a show takes off, Microsoft is open to distribution as a television show, comic book, movie or other format. "What's great about it is it stays Xbox branded. ... ," Nocas said. "We get to be a part of it throughout the entire life cycle of the [intellectual property]."

The move toward exclusive, digital-content production and distribution highlights the escalating battle between Sony and Microsoft to offer more than just games over their online networks.

Read more here: Seattle Times Newspaper