Microsoft is developing a set-top box as an alterntative to a fully-fledged next generation gaming device. The set-top will run on core components of Windows 8, offering casual gaming titles (most likely through Xbox Live) instead of the big productions you'll find on the next-generation of Xbox consoles.

Furthering the casual theme of the set-top box, Microsoft is planning on incorporating a chipset enabling the device to boot up practically instantaenously for quick and simple access to TV, games and other entertainment services.

The set-top box is but one step in Microsoft's plan to bring the core architecture of the next-generation across several devices, such as a phone capable of handling a complete Xbox Live experience.

Microsoft issued the following statement on the matter:

"Xbox 360 has found new ways to extend the console lifecycle by introducing controller-free experiences with Kinect and re-inventing the console with a new dashboard and new entertainment content partnerships. We are always thinking about what is next for our platform and how to continue to defy the lifecycle convention."