Internet TV comes to the Xbox 360
You'll be able to watch live streaming broadcasts, and you can even a game while recording a program in the background. Of course you'll get all the usual benefits of a personal video recorder, like an on-screen program guide and the ability to pause, rewind, and fast forward through recordings.
While there were rumors that Microsoft would announce a brand new version of the Xbox 360 capable of acting as a traditional video recorder, going the IPTV route means that Microsoft can roll out these new functions with a software update, no new hardware needed.
There are no details yet on pricing and whether you'll need to install a larger hard drive on your Xbox 360 for the service to work, although I'd imagine that you'd really want more than 20GB.