According to The Verge's sources familiar with Microsoft's Redmond HQ's plans, the company is building an Xbox set-top box that will be a low-cost alternative to its Xbox 360 console.
Allegedly, this "Xbox TV" is part of a two-SKU strategy for Microsoft's next-gen Xbox console that will be revealed in 2013. This set-up box is designed to provide access to core entertainment services and casual gaming features rather than full-on Xbox console titles. Based on reports, the device will run on core components of Windows 8, but the actual hardware specifications aren't exactly nailed down as of yet. But the sources say that Microsoft will use a chipset to enable an "always on" device that boots quickly and resumes to provide near-instant access to TV and other entertainment services.
This purported Xbox TV is said to be a wider effort by Microsoft to ensure its core architecture for the next-gen Xbox will be scalable enough to be put together to run on a number devices.
Keep in mind that these are all just rumors for now. When asked for a comment, here's what Microsoft had to say:
Xbox 360 has found new ways to extend the console lifecycle by introducing controller-free experiences with Kinect and re-inventing the console with a new dashboard and new entertainment content partnerships. We are always thinking about what is next for our platform and how to continue to defy the lifecycle convention.
So, that's not a "no," then? Again, keep in mind that this is just a rumor and even if it's true, it won't replace the Xbox 720 or whatever console Microsoft has in store to replace the Xbox 360. But then again, that's not really the Xbox TV's market.
Would you want an Xbox TV to rule your living room in addition to a full-on next-gen Xbox? Let us know what you think of Microsof'ts purported 2013 plans.