Microsoft said Friday that it sold a record 1.7 million Xbox 360 consoles in November. Its sales of the console--which also allows viewers to watch video from Netflix and other online video providers--increased 23 percent compared to November 2010.

While the ability for cable and satellite subscribers to cut the cord on pay TV to rely video delivered through the Xbox for home entertainment make it a competitive threat to multichannel distributors, the console may also help cable operators that could use it as a replacement for expensive digital set-tops. Comcast and Verizon recently struck deals with Microsoft which will allow their subscribers to access cable programming through the Xbox.