• Forbes, Tuesday, June 5, 2012 10:53 AM

To the great dismay of Apple and Google, Microsoft seems to be winning the war for America’s living room with, of all things, a videogame console. “Over the last 10 years, while its rivals have dithered and misfired, Microsoft has been feeding its living-room secret weapon [the Xbox] a nonstop diet of software updates and hardware upgrades,” Forbes reports.

As a result, this spring -- for the first time ever -- domestic subscribers to Xbox’s Live online service spent more time consuming video and music than multiplayer games. Globally, the hours spent on Xbox Live have grown 30% year over year, including gaming and entertainment, while video consumption has risen 140%.

“In some ways the Xbox is emerging as an alternative for those who want to cut the cable cord,” Forbes explains. “In effect, the Xbox is Microsoft’s profitable Trojan Horse.” Xbox’s Live service has more than 40 million members in 35 countries. Microsoft makes money selling them points they can use to rent videos or download games, while an estimated 17 million Live members pay about $50 a year for a Gold membership, which gets them access to Netflix, HBO Go, ESPN and multiplayer gaming.

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