While you never necessarily needed cable, the one gap in internet video service has always been the lack of live sports. According to the NY Times, Microsoft and Disney are looking to change that, bringing ESPN to your Xbox Live.

Xbox Live users can already access dated content via Netflix, but this move towards live streaming would be a major one towards killing off cable once and for all. Especially since it targets a dedicated audience (sports fans) that has significant overlap with Xbox Live's built-in gaming community.

The set-up would be similar to that of ESPN 360, which is already available from some ISPs. It would be based on a per-subscriber fee, and would include live streams of sporting events and possibly also interactive games that incorporate the ESPN brand. We'll update with more details if and when they're available. [NY Times]