Microsoft (NASDAQ:MSFT) has agreed to acquire home-automation startup R2 Studios for an undisclosed price, according to a report in The Wall Street Journal.

R2, which was launched back in 2011, has been developing next-generation technologies to connect home systems — such as lighting, thermostats, audio/TV and security — with mobile devices from Apple (NASDAQ:AAPL) and those using Google’s (NASDAQ:GOOG) Android OS.

The mastermind of R2 is Blake Krikorian, who will stay on board at Microsoft. He is the founder of the Slingbox streaming media device, which was sold to EchoStar (NASDAQ:SATS).

All in all, R2 should be a nice fit for the Xbox division. Microsoft wants its gaming console to eventually become the operating system for the living room — thus, it will be critical to compile next-generation home automation technologies.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.”  Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.