Recently Microsoft (NASDAQ:MSFT) ceded a battle in the war to bring entertainment into your living room. Microsoft TV is going away, Fool contributor Tim Beyers says in the following video.

Specifically, Mr. Softy is set to kill MSN TV -- formerly known as Web TV -- by Sept. 30, replacing it with the Xbox One console. Microsoft's gaming system has long doubled as a set-top box for enterprising viewers.

Why should investors care? Microsoft wants to own the gateway to TV and content delivery as much as Apple and Google do, and for similar reasons. TV occupies several hours of our time each day. A happy experience with Xbox-hosted Microsoft TV could make users more likely to buy related business software, Tim says.

Don't expect the effort to pay off soon, though. Tablets and smartphones have become increasingly popular for delivering streamed video entertainment, threatening both set-tops and consoles.

Bottom line, Tim says, is that the battle for your living room is only just beginning, which means buying a basket of stocks -- including Microsoft -- may very well be the safest way to play the shift to pure on-demand entertainment.