Xbox set-top unit in development, sources say

Speaking to their sources in Redmond, WA, The Verge has claimed that Microsoft is in development of a set-top box Xbox unit to be revealed sometime in the next year. This is part of a two-SKU line-up that will include whatever the next Xbox may be. This set-top box will be build from the ground up to  be always-on to allow quick boots and speedy performance. The box won’t run big boy console titles, sticking to just casual games (probably Xbox Live Arcade games), and media streaming. No word on specs or control options just yet.

This is a pretty exciting concept. I know plenty of people who would love an Xbox just to play XBLA titles, but don’t want to fork over $200 to play them. The set-top box idea is also a great concept for Microsoft, as they try to make Xbox the way we all consume our living room media, be them games, movies, music, or TV.

Would you guys pay for a lower-spec’d console, or do you see this as catering to an audience that doesn’t exist? Let us know in the comments, and on our forum.

via The Verge