Microsoft has announced the sale of IPTV service Mediaroom to tech firm Ericsson.
The company calls the deal "mutually beneficial" and claims it will allow Microsoft "to commit 100 percent of its focus on consumer TV strategy with Xbox."
Microsoft's Yusuf Mehdi said in a blog post that with the sale, "Microsoft is dedicating all TV resources to Xbox in a continued mission to make it the premium entertainment service."
He emphasised however that the vision extends beyond console to "phone, PC or tablet."
"It is not a mission that we can achieve alone," he wrote. "We want to partner with the industry to deliver the next wave of innovation in games and consumer entertainment.
"We will partner with content creators, studios, labels, networks, content aggregators, operators and distributors to make this happen. We believe the future of home entertainment is one where TV becomes more simple, tailored and intelligent. We believe the best is yet to come for this industry.
"Our vision and energy for the future of entertainment is more focused than ever. Stay tuned."
Earlier this year Microsoft opened a new LA-based studio to "create true interactive content for Xbox"