Microsoft has opened a new LA-based studio called Xbox Entertainment Studios.
Headed by Nancy Tellem, president of entertainment and digital media at Microsoft, the studio's mission is to "create true interactive content for Xbox and other devices that will change the way entertainment content is experienced and delivered".
Tellem, who also oversees live event programming for Xbox Live, said Microsoft will produce first party content and continue to partner with third party content creators in a bid to "pioneer the future of TV".
She added: "When I worked in traditional TV, we would find ourselves saying things like 'Wouldn't it be cool if we could add an interactive aspect directly into the show and engage directly with the viewers?' With Xbox, that is possible today."
Microsoft's move to broaden Xbox's content offering has included interactive events such as the Elections 2012 Hub on Xbox Live and an interactive red carpet experience for this year's Grammy Awards, something which will be repeated for the 85th Academy Awards.
Yusuf Mehdi, corporate vice president of Microsoft's Interactive Entertainment Business, said: "Yes, we started with video games, but we have been on a journey to make Xbox the centre of every household's entertainment."
Microsoft is planning to launch over 40 new voice-controlled, customised TV and entertainment apps on Xbox in 2013.
Tellem said: "We want to partner with the industry to bring entertainment into a new era. It's an era when interactive entertainment becomes the greatest form of all entertainment - and we couldn't be more excited to play a part in it."
Microsoft said last night that it has sold 76 million Xbox 360 consoles and 24 million Kinect sensors worldwide. The Xbox Live community now stands at 46 million members, including both free users and paid subscribers.