MicrosoftTV Runs Into Problems Abroad

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Microsoft reportedly will introduce a set-top box in Europe this holiday season without key elements of interactivity that were previously expected to be featured.

This would mean United Pan-Europe Communications, the largest cable TV operator in Europe, would introduce the set-top with some additional features such as Web browsing and an electronic program guide but without the ability to interact with programs and advertising, and without video-on-demand with digital video recording.

If this happens, sources said the company will download further interactivity into the boxes after they have been distributed.

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