So far, the functionality will only be available in Great Britain and Ireland, according to a Reuters report. That means, for example, that viewers will be able to talk to other fans via the Xbox Live interactive service while watching sports (or movies or newscasts).

Millions of those Xbox 360 owners will be able to watch live programming, including Premier League soccer, as well as movies, news and entertainment, following a deal with Sky, a pay-TV group. No pricing or channel lineup details are yet available. Earlier in the week, Microsoft announced its entire Xbox Live community had reached 20 million users, but did not break out sales figures for Britain and Ireland. Screen Digest estimates that U.K. users account for 10 percent of that total.

Various subscription packages will be available on approximately 20 channels, as will pay-per-view.

"Our customers have told us that they want the opportunity to use their consoles as a way to access TV, and once again Xbox has pulled off an entertainment first with amazing content and rich entertainment experience," Neil Thompson, head of Xbox U.K. and Ireland told Reuters.