Wouldn't this be a win-win situation for AT&T and Microsoft. One of the things I could see being a sticking point is "hardware-service locking". We are all familiar with it in the mobile phone space. My guess, is that AT&T would like Microsoft to lock the IPTV to their service and possibly get a kick back for content purchased from XBox MarketPlace. In my opinion, that would be a mistake and too complicated. Instead, I would suggest they create a special XBox Live Subscription to connect to AT&T's U-verse service.