MS in Xbox 360 ESPN sports show talks

New channel in the offing?

Microsoft is in talks with the Walt Disney Company to add sports channel ESPN to the Xbox 360, according to industry insiders.

People "close" to the talks between the two firms told The New York Times that Microsoft has held in-depth discussions with Disney.

A deal could lead to the launch of an ESPN subscription channel allowing gamers to watch live streams of sporting events. But an agreement is not imminent, the source said.

Microsoft has already signed a deal with UK broadcaster Sky to bring its selection of subscription-based channels, including Sky's sports coverage, to Xbox 360 owners. Sky's Xbox offerings includes ESPN content.

Earlier this month, ESPN announced plans to broadcast selected events in 3D. ®