According to sources cited by The Verge, the Xbox set-top box will be a “low-cost alternative” to the Xbox 360.
The site writes that the device will support casual gaming titles, but not “full Xbox games typically found on a dedicated console.”
In addition, the “Xbox TV” will focus on streaming multimedia content.
Contacted by The Verge, Microsoft didn’t deny the report, but issued the following statement:
“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.”