Microsoft is reportedly developing a low-cost alternative to Xbox 720 designed to provide streamed access to core entertainment services.
That's according to The Verge, which claims to have been informed by multiple sources that Microsoft will launch a set-top box in 2013 as a cheaper alternative to the platform holder's next-gen Xbox console.
It will supposedly run on the core components of Windows 8 and support casual games rather than full Xbox titles. The report goes on to say it's possible that the technology could even be incorporated into a licensed Xbox television set.
Last month The Verge reported that Microsoft is working on a 7-inch gaming tablet called Xbox Surface.
Microsoft is believed to have tightened security at its Redmond campus that plays home to the Xbox team in recent months as it looks to keep a wrap on its next gen plans.