Xbox Set-Top Box Will Stream Video

In what could further solidify the long-running rumor of Microsoft making a set-top box, a new report reveals the software giant has been developing prototypes for a simple set-top device for streaming video and other entertainment options.

However, it's unclear if the company will introduce the device. "The product's design has gone through several iterations, including recent prototypes that worked with the company's Kinect motion-control technology", The Wall Street Journal reports. Introduced in 2010, the Kinect technology allows customers to interact with a device by speaking or with gestures.

The set-box will reportedly sell for prices much cheaper than the upcoming Xbox 720 and is an attempt to attract more Xbox Live sign ups by challenging similar products from companies such as Apple and Roku.

"Microsoft intends to create common experiences among multiple products running its software, people familiar with the matter said, similar to how Apple has forged connections between its iPhone, iPad, Mac computer and Apple TV set-top box," the report states.

The set-top box will reportedly help Microsoft to build an ecosystem around devices based on its new Windows 8 operating system.  However, the unnamed sources revealed that Microsoft is still of two minds as to whether to unleash the Xbox-branded set-top box. The company apparently fears that launching the cheaper device packed with all of the same video and audio applications would lessen the demand for the new Xbox itself.

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