The rumour, that Microsoft was planning to launch IPTV on the Xbox this autumn, started when an Xbox 360 owner received the device back from Microsoft, after it had been repaired. The customer noticed a new IPTV option on the dashboard menu.
Microsoft moved quickly to dispel the rumour, saying that the IPTV feature was revealed while the device was being serviced, and is not related to the autumn update.
IPTV features will be launched this year, but will only be available from the Xbox 360 through a service provider who has deployed Xbox 360 with Microsoft Mediaroom (IPTV) services.
In the UK, it will be available to BT subscribers only, probably via a system update disc supplied through the telecoms operator.