Microsoft is investing in TV in a big way with its next Xbox console as part of a fight for the living room. Multiple sources familiar with the company's Xbox plans have revealed to The Verge that Microsoft will introduce a feature that lets its next-generation console take over a TV and set-top box in a similar way to Google TV. We understand that the next Xbox will require an online connection to use the entertainment services, allowing them to be always-on for streaming and access to TV signals.
The functionality will work by taking a cable box signal and passing it through to the Xbox via HDMI, allowing Microsoft's console to overlay a UI and features on top of an existing TV channel or set-top box. We're told that this is a key part of the next-generation Xbox and that it will go a step further than Google's TV implementation thanks to Microsoft's partnerships with content providers. Extended support for various cable services will be rolled out gradually, but the basic functionality will be available at launch.
Coupled with this TV functionality, Microsoft's next-generation Kinect sensor will also play a role in the company's TV focus. The Verge has learned that the next Kinect will detect multiple people simultaneously, including the ability to detect eye movement to pause content when a viewer turns their head away from a TV. Microsoft is said to be using these capabilities as part of its UI and features for its TV plans.
Source.
http://www.theverge.com/2013/4/10/4208970/next-xbox-tv-entertainment-plans
