Microsoft is reportedly planning to shut down its subscription-based internet television service MSN TV by late September 2013.

The software giant had acquired the service, which was WebTV originally, for $425m in 1997 and renamed the service as MSN TV in 2001.

Enabling users to check email, use MSN chat services and share photos online, the MSN TV was pioneer of several modern internet TV services and needs heavy hardware including a set-top box and bespoke keyboard.

Microsoft said in a statement that the web has continued to evolve at a breathtaking pace, and there are many new ways to access the Internet.

"Accordingly, we have made the difficult decision to end the MSN TV service on September 30th, 2013," the software giant said.

"We are working with our customers to ensure the transition is as seamless as possible."

After the service shuts down, MSN TV users can access their email via Microsoft’s Outlook.com website and also transfer photos to SkyDrive service.

Microsoft is currently working on a new touchscreen that displays 3D images that can be touched and controlled through tactile feedback.

The device is expected to allow doctors to carry out body scans and bring gamers to virtual environments.