May 21 is going to be a big day for Microsoft (NASDAQ: MSFT ) as it rolls out its next-generation gaming console, but it may also be introducing a digital video service.
Tech blogger Paul Thurrott is hearing that the new Xbox system will retail for $499, but that the software giant will also have a $299 price point for buyers committing to a $10-per-month subscription plan. The $10 plan would naturally cover the $200 price cut and perhaps an Xbox Live Gold subscription, but there has to be more than that.
Amazon.com (NASDAQ: AMZN ) has been beefing up its Amazon Prime value proposition by loading up on digital goodies, including a streaming video service that is a distant competitor to Netflix (NASDAQ: NFLX ) .
Microsoft has made no bones about making its gaming console an entertainment hub for all things video. Netflix CEO Reed Hastings did leave Microsoft's board last year.
In this video, longtime Fool contributor Rick Munarriz explores the reasons that Microsoft may be ready to take on Netflix and Amazon with its own online video buffet.
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