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TECHNOLOGY
Microsoft loses set-top box pact
Europe's No. 1 cable firm United Pan-Europe Communications canceled its deal for Microsoft's set-top software, a source said. UPC is likely to use Liberate software, despite Microsoft's stake in the company. It's Microsoft's latest interactive TV setback. Cable partner TV Cabo in Portugal recently said it had just 2,500 clients for its iTV service, five months after a high-profile launch.
AT&T in June dropped plans to use Microsoft's advanced set-top boxes for Liberate's simpler box -- even though Microsoft invested $5 bil in AT&T two years before.
Microsoft pushes Xbox potential
The newly launched video game console is part of a "broader concept," CEO Steve Ballmer said. He hinted at a long-talked-about strategy to turn Xbox into a wired entertainment hub. Microsoft originally planned an all-in-one device with games, interactive TV and PC features, Ballmer said. But software makers nixed the idea, he said.
Cisco to boost worker productivity