[dav]

The point is it won't be challenging Sky/VM etc as it won't be adding much in the way of MS content (other than Halo TV series). It is designed to augment and enhance the "TV experience" by enabling voice and gesture control and instant switching between TV/games/Skype and web etc.
The way I see it working is the VM box plugs in to the HDMI passthrough in the Xbox, you tell it you're on VM (package etc) and it downloads the channel and programme info. When you want to watch "Walking Dead" all you need to say if you can't remember the channel is something like "Xbox watch walking dead" and it will know enough to switch automagically to the right channel. Not sure if it will be able to do much with the PVR functions of a VM box as I can't see a return route back to the box.
I'm pretty upbeat about it, but it needs to be priced right as it doesn't want to be classed as an expensive remote.