Windows 8 will contain Xbox Live

Software king of the world, Microsoft is planning to jack its Xbox Live online gaming and entertainment service under the bonnet of its Windows 8 operating system.

Mike Delman, vice president of global marketing for Microsoft’s interactive entertainment unit, told the LA Times Xbox Live will be used as the central application through which consumers will buy media across a variety of devices.

At the same time, Xbox Live on the Xbox 360 will get a look which uses Vole’s “live tile” design seen on Windows Phone 7 handsets, which it has said will be central to the look of Windows 8.

Delman insists that Xbox Live has done well on the Windows Phone. If it is put into a PC, it will be the service where you get your entertainment.

It means that Xbox Live will work across devices similar in a way to Apple’s iTunes. Vole has twigged that consumers want to be able to navigate through multiple devices in a certain egosystem easily. Vole will also be going through its “assets” and unifying them under the Xbox Live label.

It is one of the advantages of having competition we guess.

In the good old days, if Microsoft had installed such software under the bonnet of Windows XP, the world would be complaining that it was using its operating system to squeeze out competition. With Vole so far behind in this game, it would be difficult for anyone to make the claim that it is squeezing anything.

However, with Windows 8 likely to hold a large chunk of the PC market, it will certainly have an impact on the entertainment industry and push Redmond’s view of entertainment very strongly. It will be interesting to see if the anti-trust regulators are stirred into action.