Nancy Tellen, former president of CBS Network Television Entertainment Group, is now Microsoft's president of Entertainment & Digital Media. She will oversee the launch of "a newly created production studio in Los Angeles that will developer interactive and linear content for Xbox and other devices." The company notes in a press release that her goal is to "turn Xbox into a destination where consumers can enjoy all their entertainment in one place."

It appears Microsoft is keen on creating original video programming for Xbox Live, as the press release specifically notes that she will help launch "compelling storytelling experiences" for Xbox.

"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," Tellem said in the press release.

"We are embarking on a new chapter with the creation of a studio dedicated to making original interactive and linear content, and I'm excited to have Nancy leading this effort," Microsoft corporate VP Phil Spencer also added.

As pointed out by The New York Times, Microsoft's move echoes that of other competitors in the VOD space, including Netflix and Hulu--both of which have signed and distributed exclusive video content for their subscription services. With both Nintendo and Sony expanding their online offerings, Gizmodo notes that original video programming may be yet another way of justifying Xbox Live's annual fee.

Sony has offered some original programming on PlayStation Network with The Tester and Qore. Xbox Live also used to offer original video game-focused programming through Inside Xbox, which the company shuttered a few months ago.