Microsoft Working on ARM-Based Xbox Lite Platform - Rumour

From X-bit Labs: Microsoft Corp. is reportedly working on a new low-cost platform that will use microprocessors based on ARM architecture and which will be aimed at casual gamers. The device will compete primarily against set-top-box products like Apple TV and will likely be a multimedia, rather than a purely gaming device.

"My understanding is that we'll see a Xbox device in late 2013 which does Arcade-style games and all the current and future media apps with Kinect (with near-mode). It will be an ARM-based platform price-competitive with the Apple TV (if you own a Kinect already)," said MSnerd, a well-known blogger with knowledge of Microsoft's plans.

Low-cost ARM-based device for gaming and media services will likely be Microsoft's approach to compete against Apple TV, which shares software and hardware platforms with iOS-based devices like iPhone or iPad. Since modern ARM-powered system-on-chips can be very powerful, the set-top-box could potentially handle high-definition games, including those designed for Windows Phone or Windows 8.

"At some point after that, we will see a Xbox Next, a true successor to the 360. Details about it are very hazy, except that, like the 360, it will do games for core-audiences and the same media apps as the other device, also with Kinect," according to MSnerd.

As the Xbox console and Xbox set-top-box are unlikely to compete directly against each other their launch schedules may not be aligned at all. Moreover, in case the Xbox STB costs around $100 and is designed mostly for media services, Microsoft may launch it earlier than in late 2013. In fact, it makes a lot of sense for the software giant to release its STB sometimes around the Windows 8 launch.

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