Microsoft has apparently added R2 Studios, a home automation company, to its Xbox division, according to a new report.

The Wall Street Journal states that anonymous sources have shared word that Microsoft has acquired the “small home-entertainment technology start up,” along with all of its patents relating to “controlling electronic devices.” R2 Studios allegedly negotiated with Apple and Google before signing with Microsoft.

The company has been “working on technology related to distributing and displaying digital media on TVs,” according to the WSJ, and was founded in 2011 by Blake Krikorian–who will be bringing a small team to Microsoft as part of the deal. R2 Studios has released one commercial product so far, the Android app R2 Control for Crestron. This $99 app allows users to control AV equipment, lighting, thermostats, security systems, and other electronic systems from their smartphone.

Presumably Microsoft is planning on using this technology with its next-generation console via SmartGlass, which allows users to control their console via a smartphone or tablet.

What do you think the technology will be used for? Let us know in the comments below.