Illusions/delusions of grandeur

According to Microsoft, the Zune and the XBox 360 form the hub of the company's online strategy, reports The New York Times.

Both products, according to product manager J Allard, use the same central back end, a back end that will also be used for mobile and other online products.

Microsoft's vision, Allard says, is a one-stop shop where users can connect to music, gaming and more based either on a rental or download-to-own model.

The company has been successful with its Xbox Live service and eventually sees it — or an expansion of it — as the model for its connected future.

Over the long term, Microsoft hopes to serve as the platform people turn to for online content, whether it be from Microsoft itself or from other providers. This may fall part and parcel with its aspirations to become top cog — er, dog — in the online advertising industry.