Who knows maybe if they are changing Xbox Video to a more of a Amazon Video style service - where Prime members get "free content" as a value add to Prime subscriptions. If it means them removing general Apps from behind a paywall like Netflix and instead they want to deliver new video content. I'm all for.
Some of the shows do sound interesting at least.
It's not that. It's just really the most bizarre business decision I've seen a company like Microsoft consciously make in a while. For the one thing, Xbox programming is going to be competing with other viable video services that exist elsewhere, so it's already a crowded market. And those viable video services usually offer just incalculably more programming, for a much smaller buy-in.
For another,
it's an increasingly volatile business in which even cable companies are rapidly trying to find ways to survive. Every single big network and video service has entered a brutally competitive landscape for which there are less viewers to fight over every year, and which TV becomes less important in the age of youtube and netflix.
It cannot be overstated how little business sense it makes to suddenly enter this market, because 360 is on its way out in relevance and will likely end up contributing little to viewers in two years,
Windows 8 is still at like 8% market share, and Xbox One is such a comparatively tiny audience. Think of it, even on Xbox 360, only approximately 46 million people were on Live, and even that was combining both Silver and Gold accounts which are hardly the same thing at all (in fact, will Silver users even be able to watch these shows?). Xbox One has 4 million sales if it's lucky (will be at, what, ten million by the time the shows start coming out, of which only 60-70% will likely even be online in any meaningful way - if I'm being ridiculously generous?), and only a small percentage of the base will watch - that's not a knock against XBO, the same is true of any device.
They're choosing shows that seem pretty ambitious, will require at least a modest effects budget to be convincing, and they're going to be aiming at an audience that is comparatively tiny.
Netflix alone has 49 million worldwide accounts! And that's a service where people buy into it JUST to watch that sort of content!
I think it makes sense to discuss the very dangerous business ground this is walking on for Microsoft.