Rumors indicate that Redmond-based software company Microsoft is on track to host "original video content" on its Xbox Live portal, but the details of the content are not yet known.

"Microsoft has hired Nancy Tellem, a former top CBS television executive, to oversee the production of original video content to be delivered to the company's Xbox video game console, according to people with knowledge of the move who did not want to be named ahead of an official announcement," The New York Times Bits Blog reported on Sept. 18.

Microsoft's move seems to be aimed at bringing to fruition its vision of making the Xbox 360 a go-to entertainment hub. Additionally, it was recently reported that the company is becoming interested in distribution, and the rumored move could be a step in that direction, giving Microsoft an effective platform to churn out content across Xbox and Windows.

If Microsoft were to foray into the production of new content, the move would make good business sense. Currently, the company boasts of millions of online users and has a readymade platform, which would make the transition smooth. Of late, content providers like Netflix and Hulu have also been looking to take the original content route. With movie studios and networks being perennially at loggerheads with distribution channels, the decision to create original content seems to be a simpler, hassle-free solution.

Microsoft is yet to comment on the New York Times report. However, Nancy Tellem may have hinted at the development of original content for the "consumer favorite" Xbox and indicated that there was a "tremendous opportunity to transform it into the center of all things entertainment."

"I look forward to building a studio team that embraces the challenges of creating true interactive content that the Xbox platform supports and to work with talent to create content that will change the way entertainment content is experienced and delivered," said Tellem.