Microsoft Beats Apple, Buys Home Entertainment Company R2 Studios

Microsoft and Sony have yet to reveal any specifics regarding the next generation of video game consoles, but that doesn't mean there aren't some interesting shifts going on behind the scenes. After attracting interest from both Google and Apple, the startup company id8 Group R2 Studios Inc. has been snatched up by Microsoft for an undisclosed price.

Founded by entrepreneur Blake Kirkorian, R2 Studios centers itself around developing home automation technology. Its first and most recent product, R2 Control for Crestron, allows users to control home theatre equipment, thermostats, lighting, and other home automation systems through their Android devices.

Exactly what R2 Studios will do for Microsoft remains unclear, but they will reportedly be working within the Xbox division - presumably on a project related to the company's upcoming console. In addition to acquiring the resources and brains behind the studio, Microsoft will also obtain whatever patents R2 Studios possesses, including those regarding Android apps and the control of electronic devices.

Kirkorian's previous venture, Sling Media, was responsible for the Slingbox, a device that allows customers to watch and control their home televisions through their computers, tablets, and smartphones.

Ever since the launch of the original Xbox, it's been no secret that one of Microsoft's primary goals is to control the living room. During its heated competition with Sony, the company has integrated social networking and streaming services into its console, and the acquisition of R2 Studios paves the way for future developments in its quest to become the centerpiece of the livingroom.

As Darrell Etherington writes for TechCrunch, "the opportunity is there for Redmond to now build connected home control directly into their software platforms."

Considering R2 Studios' Android products, it's of little surprise that Google also expressed interest in buying the company to help bolster its portfolio. Apple, too, filed patents last year concerning the potential for its iPhone to become the central hub of a home that functions digitally. Despite these patents, however, the company has yet to release any home automation products itself.

Microsoft is expected to reveal new information on its upcoming Xbox console at this June's Electronic Entertainment Expo (E3) in Los Angeles.

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