The rumours were true! Microsoft and BSkyB have teamed up to see Sky content distributed on the Xbox 360. Which is, in a word, awesome!
The deal will see content both live and pay-per-view on the Sky Player, which is already available on the PC and Mac. A range of interactive services are promised, too. Sky Sports is given as an example, with news, fixtures and similar on-demand information available around broadcast content. Other Sky offerings will see similar treatment, too.
Content won't be available to download - which seems a massive oversight - but, rather, will be streamed on-demand. No word as to whether HD video will be available, but the streaming-only nature of Sky on Xbox suggests not, to me at least.
Pricing isn't being talked about yet and it's going to be interesting to see how Sky and Microsoft play things. Sky already offers the Sky Player free to satellite subscribers, or from £15 to £38 a month to new customers depending on the packages wanted. I'd hope prices in the Xbox would be cheaper but wouldn't count in it. It seems highly unlikely, at least, that existing Sky customers would be required to pay twice for the service.
Sky will make its debut on the Xbox 360 this Autumn so expect more details between now and then.