Microsoft (MSFT) Beat-Out Peers to Acquire Home Entertainment Start Up R2 Group

January 3, 2013 6:36 AM EST
Microsoft (Nasdaq: MSFT) is making more moves into invading consumers living room.

According to the WSJ Thursday, Microsoft has acquired id8 Group R2 Studios Inc. ("R2 Studios") for an undisclosed sum.

R2 Group is a home-entertainment technology start up that Microsoft nabbed to bolster its Xbox unit. The company specializes in technology tied to distributing and displaying digital media on TVs.

The WSJ noted that R2 Group was also in talks with Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) over a possible deal.

Microsoft is working on making its Xbox more than just a video game system, seeking to turn the device into a full-on home entertainment hub. Microsoft's Xbox is still one of the hottest-selling gaming consoles globally, though the venerable software giant will be facing some stiff competition when it releases the newest version of the console later on this year (rumored). Apple and Google, for example, have begun offering video games that have largely compared to some of those available on the Xbox.

Shares of Microsoft are lower Thursday morning.

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