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Microsoft rumored to take on Apple TV with Xbox-branded set-top box in 2013

Microsoft may compete more directly with the Apple TV next year with a new low-cost set-top box that will access the company's Xbox entertainment services.

Details of Microsoft's rumored plans were reported on Wednesday by The Verge, which indicated the device would be intended for streaming media, as well as casual gaming. The box is said to be part of a two-model strategy for the company, which is also expected to introduce its next-generation full-fledged successor to the Xbox 360 console next year.

"The device will run on the core components of Windows 8 and support casual gaming titles rather than full Xbox games typically found on a dedicated console," author Tom Warren explained. "Although hardware specifications aren't fully locked down, we understand Microsoft will use a chipset to enable an "always on" device that boots quickly and resumes to near-instant access to TV and entertainment devices."

Microsoft and Apple already compete in the living room, but the Xbox 360 console is a gaming-centric device with a starting price twice that of the $99 Apple TV.

The Windows maker recently rebranded its entertainment services with the Xbox name, ditching the Zune name that was previously tied to the company's failed line of portable media players. Before it was discontinued, the Zune attempted to compete with Apple's market dominating iPod lineup.

The Apple TV can also be used for gaming, but only via iPhone, iPad or iPod touch games that support AirPlay functionality. The Apple TV lacks a dedicated App Store for new software, and also lacks a dedicated gaming controller.

Tim Cook referred to the Apple TV as a "beloved hobby" during his company's quarterly conference call in October. He revealed that more than 5 million units were sold in fiscal 2012, but sales were not strong enough for the device to have much of an impact on the company's bottom line.



62 Comments

sunspot42 17 Years · 93 comments

That's Microsoft.  Always finding innovative new ways to FAIL.

wings 21 Years · 261 comments

That's one way to fix Windows' long boot times, just leave it on constantly.

jeffdm 20 Years · 12733 comments

I don't understand what's wrong with just using an XBox 360 console and calling it a day.

philboogie 15 Years · 7669 comments

But of course Microsoft is going to do this. They've never done anything else than either copy the competition, or if unable, eliminate them. Personally, I've always had a different feeling when I think about the term Xbox, but that's just my Dirty Mind.

sockrolid 14 Years · 2789 comments

Red Ring of Death, meet Blue Screen of Death.