Likely to launch in partnership with a cable provider, enabling lower cost of entry.
The Xbox 720 will be a Windows device capable of bypassing the need for a digital television box or smart TV, Wedbush analyst Michael Pachter told an audience at the Develop Conference yesterday.
"I think Microsoft's got it right [with their console strategy], and I think Sony will keep plugging away because they have an integrated strategy across all of their consumer electronic products. Microsoft, they have a strategy to take over the world," said Pachter, as reported by IncGamers.
"Console will have to be multiple purpose devices, though. The Xbox 720, this is my prediction, is going to be your television as well [as your game console]. You'll be able to tune into television through it.
"You won't need a 'smart TV' when you've got an Xbox 720, it will be your television and your internet. It's going to be open architecture and I think it's real trick will be that one Xbox will be able to display television to as many screens as you have in your possession."
He continued: "The next Xbox will be Windows for sure, and you'll be able to open up multiple TV channels in different windows and you'll use SmartGlass to shoot off different channels to how ever many screens you want. That is happening, that I'm certain of."
And the current on-contract Xbox 360 is a sign of things to come in the next generation, says Pachter.
"I'm pretty confident that in the US Microsoft is going to partner with a cable TV provider, so I expect that the console will be priced like a smart phone. I expect you'll be paying $99 for the console with a cable TV subscription."
Would you be happy with the next Xbox being even more focussed on delivering television content, or would you rather games return to the forefront?