Microsoft is in talks with cable operators to replace set-top boxes with the new Xbox, it has been reported.
Sources have stated that Microsoft is in ongoing talks with cable operators such as Time Warner about the possibility of delivering content through the web instead of traditional cable pipes.
The report also suggests that due to its multimedia capabilities, Microsoft is not referring to the new Xbox as a games console.
"They might not even use the phrase game console this time around because they're trying to pitch it as this incredible entertainment hub in the home," Envisioneering Group's Richard Doherty told Bloomberg.
However, research carried out by NPD analyst Liam Callahan suggests that multimedia apps such as Netflix aren't as desirable as improved graphics and innovative gaming experiences.
"Those entertainment options are important - in a sense they are almost a given, but gamers won't buy a next-generation console from Sony or Microsoft for that," Callahan explains.
It was recently revealed that the new Xbox will be unveiled in two stages. Tuesday's event (May 21) will introduce the hardware, while E3 will be focused on the software.
Microsoft recently registered a host of web domains including one featuring the word 'Fusion', sparking rumours that this will be the name of the upcoming console.
However, sources close to the development of the console have suggested that it will be called 'Xbox Infinity'.
Reported features for the new Xbox include Kinect 2.0, 3D technology and the long-rumoured Xbox TV.
> Xbox 720: What to expect from Microsoft's new console unveil this week
Watch a video regarding Microsoft's entertainment services below:
