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Pizza Hut launching Xbox 360 app that lets console owners order pizza from Xbox Live

Microsoft and Pizza Hut have partnered up to launch a pioneer app for Xbox Live that will allow users to order from the chain's menu directly through their Xbox 360.  —  The Pizza Hut for Xbox app makes …

Polygon Alexa Ray Corriea

Context & Ripple Effects

Xbox Live had already moved beyond games by adding Comcast, HBO and MLB.TV streaming apps in 2012. Pizza Hut extends that app model from media consumption to a retail transaction, giving the service a consumer-brand use beyond entertainment.

The partnership arrives as Microsoft is seeking ways to cushion a PC-sales decline; it makes Xbox Live a more broadly useful connected-device surface for a national chain, not only a gaming network.

First-order effects

  • Pizza Hut gains a direct ordering channel on Xbox 360, while Xbox Live users can place Pizza Hut orders without leaving the console interface.
  • Microsoft adds a transaction-oriented brand app to an Xbox Live catalog already populated by television and sports services.

Second-order effects

  • Other restaurant chains and consumer brands face a clearer incentive to evaluate Xbox Live as a distribution channel where their customers already spend time.
  • Xbox Live’s value to partners shifts toward its ability to carry both content apps and commercial services, increasing the importance of app discovery and a smooth ordering experience.

Third-order effects

  • If consumer brands adopt comparable apps, the console’s role broadens from a dedicated game machine into a living-room software platform that intermediates purchases as well as media.
  • The move is part of a platform race in which connected-device operators seek recurring relevance through third-party services rather than relying solely on hardware sales and game releases.

The trend: Connected entertainment platforms are expanding their app catalogs from video services into branded commerce, making the living-room screen a retail access point.